Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Unit costs, variance analysis and interpretation...please see attached. 22.33 determining unit costs, variance analysis and interpretation Big Dog Company, a manufacturer of dog food, produces

Unit costs, variance analysis and interpretation...please see attached. image text in transcribed

22.33 determining unit costs, variance analysis and interpretation Big Dog Company, a manufacturer of dog food, produces its product in 1,000 bag batches. The standard cost of each batch consists of 8000 pounds of direct materials at $0.30 per pound, 48 direct labor hours at $8.50 per hour, and variable overhead cost (based on machine hours) at the rate of $10 per hour with 16 machine hours per batch. The following variable costs were incurred for the last 1,000 bag batch produced: Direct materials...... 8300 pounds costing $2,378 were purchased and used Direct Labor....... 45 hours coting $450 Variable overhead..... $225 Machine hours used.... 18 hours Required: a. Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor and variable overhead. b. For the last 1,000 bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead. c. Explain the possible causes for each of the variances determined in requirement (b)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Financial And Management Accounting An Introduction

Authors: Pauline Weetman

8th Edition

1292244410, 978-1292244419

More Books

Students also viewed these Accounting questions

Question

5. What is the concept of Market efficiency, do you believe it?

Answered: 1 week ago

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago