Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standard costs. The standards per

image text in transcribedimage text in transcribed

XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standard costs. The standards per 0.50-liter can of solution call for 0.70 liters of material and four hours of labor. (0.70 liters of material are needed due to evaporation in the production process.) The standard cost per liter of material is $2.60. The standard cost per hour for labor is $14. Overhead is applied at the rate of $15.83 per can. Expected production is 7,500 cans with fixed overhead per year of $27,975 and variable overhead of $12.10 per unit (a 0.50-liter can). During 2021, 7,700 cans were produced; 13,700 liters of material were purchased at a cost of $63,020; 9,800 liters of material were used in production. The cost of direct labor incurred in 2021 was $374,000, based on an average actual wage rate of $10 per hour. Actual overhead for 2021 was $135,500. (a) Determine the standard cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Standard cost $ per unit Calculate material, labor, and overhead variances. (Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.) Material Price Variance $ Material Quantity Variance $ Labor Rate Variance $ Labor Efficiency Variance $ > Controllable Overhead Variance $ Overhead Volume Variance $ >

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

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

Recommended Textbook for

Anti Fraud Risk And Control Workbook

Authors: Peter Goldmann, Hilton Kaufman

1st Edition

0470496533, 978-0470496534

More Books

Students also viewed these Accounting questions

Question

Find the mean of each sample in Exercise

Answered: 1 week ago

Question

2. You seem to feel frustrated when Lee doesnt do his homework.

Answered: 1 week ago