Question
You have been given the following information about the production of Tamarisk Co., and are asked to provide the factory manager with information for a
You have been given the following information about the production of Tamarisk Co., and are asked to provide the factory manager with information for a meeting with the vice-president of operations:
| Standard Cost Card | |||
|---|---|---|---|
| Direct materials (6.00 kg at $3.20 per kilogram) | $19.20 | ||
| Direct labour (0.70 hours at $4.50) | 3.15 | ||
| Variable overhead (0.70 hours at $3.20 per hour) | 2.24 | ||
| Fixed overhead (0.70 hours at $7.00 per hour) | 4.90 | ||
| $29.49 |
The following is a production report for the most recent period of operations:
| Variances | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Costs | Total Standard Cost | Price/ Rate | Spending/ Budget | Quantity/ Efficiency | Volume | |||||||||
| Direct materials | $374,400 | $5,997 | F | $9,408 | U | |||||||||
| Direct labour | 61,425 | 2,990 | U | 5,850 | U | |||||||||
| Variable overhead | 43,680 | $1,020 | F | ? | ||||||||||
| Fixed overhead | 95,550 | 410 | F | $14,000 | U | |||||||||
What was the actual variable overhead cost incurred during the period?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
125972266X, 9781259722660
