Question
You have been given the following list of variances for the Pennadi Company: Direct materials price variance $ 16,800 U Direct materials quantity variance 12,000
You have been given the following list of variances for the Pennadi Company: Direct materials price variance $ 16,800 U Direct materials quantity variance 12,000 U Direct labour rate variance 16,270 F Direct labour efficiency variance 27,000 U Variable overhead spending variance 3,120 U Variable overhead efficiency variance 6,000 U Fixed overhead budget variance 5,000 U Fixed overhead volume variance 53,250 F You have also been given the following information: Actual units produced 25,000 Budgeted units of production (normal volume) 20,000 Standard labour-hours for actual output 12,500 Standard material units for actual output 400,000 Actual direct labour costs $ 235,730 Actual cost of direct materials $ 496,800 Overhead is applied using direct labour-hours. Variable overhead is applied at the rate of $10 per direct labour-hour. The materials purchase price was $0.828.(Attempt the following questions in the order listed.)
6. | How many actual direct labour-hours were worked? |
7. | What was the standard cost per unit of output produced, assuming that variable costing was used? |
8. | Calculate the budgeted fixed overhead cost allocation rate. (Round your answer to 2 decimal places.) |
9. | Calculate the actual, budgeted, and allocated fixed overhead costs. |
10. | Calculate the underapplied or overapplied fixed overhead cost. |
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