Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You work in the accounting department of Frobisher Company, a manufacturing company that produces a popular consumer product. You typically prepare the variance analysis report

image text in transcribed
You work in the accounting department of Frobisher Company, a manufacturing company that produces a popular consumer product. You typically prepare the variance analysis report and present it to the management committee for their review. Unfortunately, the accounting system has been down and the information you have is incomplete. However, you want to impress the management committee by preparing the variance analysis on a timely basis. You recall that manufacturing overhead cost is applied to production on the basis of direct-labour hours and that all of the materials purchased during the period were used in production. The standard costs for production are presented as follows: Direct materials, 9 kilograms @ $3.00 per kilogram $27.00 Direct labour, 1.2 direct labour hours @ $15.00 per direct labour hour 18.00 Variable manufacturing overhead, 1.2 direct labour hours @53.00 per direct labour hour 3.60 Fixed manufacturing overhead, 1.2 direct labour hours @$7.00 per direct labour hour 8.40 $57.00 The following table presents the information and analysis that you had generated before the accounting system went down: Total Price or Spending Quantity or Standard Rate or Budget Efficiency Volume Cost Variance Variance Variance Variance Direct materials $202,500 53,450F $4,500U Direct labout $135,000 $7,2750 $10,500U Variable manufacturing overhead 527,000 $65OF Fixed manufacturing overhead $63,000 $25OF $7,00OU In order to be prepared for the management committee meeting, you want to generate the missing variances and also have the necessary "backup" data ready. Required: 1. How many units were produced last period? 2. How many kilograms of direct material were purchased and used in production? 3. What was the actual cost per kilogram of material? 4. How many actual direct-labour hours were worked during the period? 5. What was the actual rate paid per direct labour hour? 6. How much actual variable manufacturing overhead was incurred during the period? 7. What is the total fixed manufacturing overhead cost in the company's flexible budget? 8. What were the denominator direct labour hours for the last period

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

Textbook Of Financial Accounting And Analysis

Authors: Gaurav Agrawal

1st Edition

9350840901, 9789350840900

More Books

Students also viewed these Accounting questions

Question

Find the domain and range of the function.

Answered: 1 week ago

Question

please tell the role of management accounting in IT industries?

Answered: 1 week ago