Variance Analysis and Standard Costing - Vulcan Rubber SealsVulcan Company produces rubber seals used in the aerospace
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Variance Analysis and Standard Costing Vulcan Rubber SealsVulcan Company produces rubber seals used in the aerospace industry. Standards call for pounds of material @ $ per pound for each seal. The standard cost for labor is hours at $ per hour. Standard overhead is $ per unit. For the current year, expected production is seals with fixed overhead of $ and variable overhead of $ per seal. During the current year, seals were produced. The company purchased pounds of material for $ Production required pounds of material. The cost of direct labor incurred was $ with an actual average wage rate of $ per hour. Actual overhead for the year was $Instructions:What is the standard cost per seal?Calculate the material, labor and overhead variances.Prepare a summary of the variances and indicate which variances should be investigated.
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