You have been given the following information about ALG Co. Ltd., which uses a standard cost system
Question:
1. In the month of November 2012, 5,000 units were produced.
2. The annual overhead budget includes $750,000 for variable and $1,050,000 for fixed overhead items. Budgeted production for the year is 50,000 units. Overhead is applied based on direct labour hours.
3. The materials standard per unit is 20 litres at $1.
4. The direct labour standard per unit is 3 hours at $10.
5. The actual price paid for material was $0.99.
6. The actual direct labour rate was $10.50.
7. Actual fixed overhead costs totalled $88,000.
8. The following variances have already been calculated:
Materials price....................................................................600 F
Materials quantity.............................................................1,600 U
Labour rate.....................................................................7,400 U
Variable overhead spending..................................................1,800 U
Instructions
Calculate the following:
(a) The quantity of material purchased
(b) The quantity of material used
(c) The actual direct labour hours worked
(d) The labour efficiency variance
(e) The variable overhead efficiency variance
(f) The actual variable overhead
(g) The fixed overhead budget variance
(h) The fixed overhead production volume variance
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
Question Posted: