Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Vernon Company has developed the following standards per unit for one of their products. Direct materials: 20 pounds per unit x $3 per pound

The Vernon Company has developed the following standards per unit for one of their products. Direct materials: 20 pounds per unit x $3 per pound Direct labor: 15 hours per unit x $18 per hour Variable overhead: 15 hours per unit x $2 per hour Budgeted volume for November was 1,000 units. The following activity occurred during November: Units Produced: 1,000 units Materials used: 21,000 pounds at $3.20 per pound Direct labor: 14,000 hours at $17.50 per hour Actual variable OH: $29,400 Calculate the following to the nearest dollar (do not include a - sign in your answers, if applicable)

3) The materials price variance

4) The materials usage variance.

5) The labour price variance

6) The labour usage variance.

7) The Variable OH spending variance (variable OH is allocated using direct labour as the basis)

8) The Variable OH efficiency variance (variable OH is allocated using direct labour as the basis)

9) What was the overall Flexible Budget Variance for Materials

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions