Question
The following standard costs were developed for one of the products of Prosciutto Corporation: STANDARD COST CARD PER UNIT Materials: 4.5 feet x $13 per
The following standard costs were developed for one of the products of Prosciutto Corporation:
| STANDARD COST CARD PER UNIT | |
|
|
|
| Materials: 4.5 feet x $13 per foot | $ 58.50 |
| Direct labor: 8 hours x $10.10 per hour | 80.80 |
| Variable overhead: 8 hours x $8 per hour | 64.00 |
| Fixed overhead: 8 hours x $12 per hour | 96.00 |
| Total standard cost per unit | $299.30 |
The following information is available regarding the company's operations for the period:
| Units produced: | 11,000 |
| Materials purchased: | 56,000 feet @ $13.40 per foot |
| Materials used: | 40,000 feet |
| Direct labor: | 84,000 hours costing $840,000 |
|
|
|
| Manufacturing overhead incurred: |
|
| Variable | $756,000 |
| Fixed | $1,000,000 |
Budgeted fixed manufacturing overhead for the period is $960,000, and the standard fixed overhead rate is based on expected capacity of 80,000 direct labor hours.
Required:
| f. | Calculate the variable manufacturing overhead efficiency variance. |
| g. | Calculate the fixed manufacturing overhead spending variance. |
| h. | Calculate the fixed manufacturing overhead volume variance. |
| i. | Prepare the journal entry for the purchase and usage of materials. |
| j. | Prepare the journal entry for direct labor. |
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Modern Financial Markets And Institutions
Authors: Glen Arnold
1st Edition
0273730355, 9780273730354
