The Gallo Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct-cost categories (direct materials and direct manufacturing laborlong dashboth variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual results are for August:

1.

Compute the following for August:

a.

Total pounds of direct materials purchased

b.

Total number of pounds of excess direct materials used

c.

Variable manufacturing overhead spending variance

d.

Total number of actual direct manufacturing labor-hours used

e.

Total number of standard direct manufacturing labor-hours allowed for the units produced

f.

Production-volume variance

2.

Describe how Gallo's control of variable manufacturing overhead items differs from its control of fixed manufacturing overhead items.

At the 30 comma 000 budgeted direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $ 750 comma 000, budgeted variable manufacturing overhead is $ 480 comma 000, and budgeted fixed manufacturing overhead is $ 750 comma 000.

The standard cost per pound of direct materials is $ 11.50. The standard allowance is 6 pounds of direct materials for each unit of product. During August, 20 comma 000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $ 1.10 per pound.

In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $ 97 comma 500. There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $ 0.50 per hour.

Score: 0 of 1 pt Hw Score: 0%, 0 of 4 pts uestion Help P8-43 (similar to) The Galio Company uses a fexible budget and standard costs to aid planning and control of its machining manufacturing operatons its costing system for manufacturing has two dinect-cost caegories (direct materia's and dinect manufacturing labo.both varlabie) and two overhead-oost categories (variable manufacturing overthead and fxed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual resuts are for August EE (Click the icon to view re results) Some addtional Information about Gallo Company's budget, standard costs and labor folows (Cliok the loon to view a3sitionsl information) Read the tesumn Requirement 1. Compune the lanet.no Agat Desernine po tonula then complete the computation for each (Abtrevatons used DM-Drect metonais, mig a hennrg, OH-Overhead) a Total pounds of direct materia's puchased Pounds of M Score: 0 of 1 pt Hw Score: 0%, 0 of 4 pts uestion Help P8-43 (similar to) The Galio Company uses a fexible budget and standard costs to aid planning and control of its machining manufacturing operatons its costing system for manufacturing has two dinect-cost caegories (direct materia's and dinect manufacturing labo.both varlabie) and two overhead-oost categories (variable manufacturing overthead and fxed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual resuts are for August EE (Click the icon to view re results) Some addtional Information about Gallo Company's budget, standard costs and labor folows (Cliok the loon to view a3sitionsl information) Read the tesumn Requirement 1. Compune the lanet.no Agat Desernine po tonula then complete the computation for each (Abtrevatons used DM-Drect metonais, mig a hennrg, OH-Overhead) a Total pounds of direct materia's puchased Pounds of M