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A manufacturer had the following information: Units produced Budget 12,000 Materials used in production 480 kg Material Costs Direct Labour (Hours) Variable Overhead Costs Direct Labour Costs Fixed Overhead Costs $9,600 Actual 12,800 ? ? 40,000 hrs 44,200 hrs $420,000 $476,560 $380,000 $445,040 $170,000 $150,120 Other Information: . • • Overhead is allocated on direct labour hours. During the year, 645 kg of materials were purchased for $13,000. • Beginning direct material inventory: none Ending direct material inventory: 45 kg Question: Calculate the variable overhead rate (spending) variance. a. $15,220(F) b. $21,150(U) c. $28,210 (F) d. $25,140 (U)

A manufacturer had the following information: Units produced Budget 12,000 Materials used in production 480 kg Material Costs Direct Labour (Hours) Variable Overhead Costs Direct Labour Costs Fixed Overhead Costs $9,600 Actual 12,800 ? ? 40,000 hrs 44,200 hrs $420,000 $476,560 $380,000 $445,040 $170,000 $150,120 Other Information: . • • Overhead is allocated on direct labour hours. During the year, 645 kg of materials were purchased for $13,000. • Beginning direct material inventory: none Ending direct material inventory: 45 kg Question: Calculate the variable overhead rate (spending) variance. a. $15,220(F) b. $21,150(U) c. $28,210 (F) d. $25,140 (U)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...
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Calculate the variable overhead rate

A manufacturer had the following information: Units produced Budget 12,000 Materials used in production 480 kg Material Costs Direct Labour (Hours) Variable Overhead Costs Direct Labour Costs Fixed Overhead Costs $9,600 Actual 12,800 ? ? 40,000 hrs 44,200 hrs $420,000 $476,560 $380,000 $445,040 $170,000 $150,120 Other Information: . • • Overhead is allocated on direct labour hours. During the year, 645 kg of materials were purchased for $13,000. • Beginning direct material inventory: none Ending direct material inventory: 45 kg Question: Calculate the variable overhead rate (spending) variance. a. $15,220(F) b. $21,150(U) c. $28,210 (F) d. $25,140 (U)
Transcribed Image Text:A manufacturer had the following information: Units produced Budget 12,000 Materials used in production 480 kg Material Costs Direct Labour (Hours) Variable Overhead Costs Direct Labour Costs Fixed Overhead Costs $9,600 Actual 12,800 ? ? 40,000 hrs 44,200 hrs $420,000 $476,560 $380,000 $445,040 $170,000 $150,120 Other Information: . • • Overhead is allocated on direct labour hours. During the year, 645 kg of materials were purchased for $13,000. • Beginning direct material inventory: none Ending direct material inventory: 45 kg Question: Calculate the variable overhead rate (spending) variance. a. $15,220(F) b. $21,150(U) c. $28,210 (F) d. $25,140 (U)
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