Question
You have started working as a cost accountant for a firm that has only been in business for one month. The firm is able to
You have started working as a cost accountant for a firm that has only been in business for one month. The firm is able to buy a new type of biodegradable plastic at a fixed price of $100 per roll. The plastic is then cut and sealed to make garbage bags. Fixed factory overhead is estimated to be $125,000 per month. During this past month, 8,000 cartons of garbage bags were produced, which represents 80% of the activity volume. You are given the following information:
Rolls of plastic used | 40 | ||||
Variable overhead incurred | $61,000 | ||||
Overhead efficiency variance | $5,000 | U | |||
Standard costs per carton of garbage bags: | |||||
Labour hours | 2 | ||||
Wage rate | $8 | per hour | |||
Total overhead | $20 | ||||
Rolls of plastic | 0.004 | rolls |
Actual number of direct labour hours incurred. (Round answer to the nearest whole hour, e.g. 5,275.)
Actual number of direct labour hours | hours |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started