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The Rizeo Company uses a fiexitie budget and standard costs to aid planning and cortrol of tss machining matufachring operations. its cosing syatsm for manutacturing

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The Rizeo Company uses a fiexitie budget and standard costs to aid planning and cortrol of tss machining matufachring operations. its cosing syatsm for manutacturing has two direct-cost uting direct manufacturing iabor hours). The following actual results are for August Requirements 1. Compue the folowng for August: a. Total pounds of direct maleris purchased b. Total number of poundis of ersess direct matefials utit c. Varable manufocturing ovemead spending variance d. Total number of actual dreet manufocturing labor hoss used e. Total number of slandard devet marufocturng laboc-hours alowed for the unts produced f. Production-volume varianoe 2. Descrite how Rizzols control of vaciabe manulacturiny overhead nemis affer More info from its control of fxed manufacturing overtead llems. At tee 30,000 tudyeted drect manstacturng labor hour level for Auguat, budgetad diect manvtacturng labor is 5600.060 , budgeltd vartaole manutacharing ovarhead is 5300.050 , and budgoted fored manufacturing overtead is $750,000 Tho standard oost per peund of drect matorials is $11,50. The sundand allowance is 6 pounds of drect matedas for each unk of product. During August, 30,000 units of product were produced. There was no begining inentory of direct materials. There was no begineing of ending work in process. In Acpust the direct materials price variance was $1.10 per pound In Jley. lator urrest cawsed a major slowsohn in the poce of producton, reaulting in an unfrrorable drect manuladuriog laber effeienoy variance ot \$175,000. There was no drect mansfactunng laber perce varlance, Laber inest persated irto Asguat Sons woiken cue. Their replacements had to be hred at higher wage rates, utich had sa be extended to all woekers. The actual average wage rate in August eiceeded the standard average eage rate by 50.50 per heur

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