ABC Company makes a single product which has the following standards: Direct materials 2 kilograms $4.30 per kilogram Direct labor 3 hours $6.00 per hour Variable overhead 3 hours $6.50 per hour Fixed overhead 3 hours $9.00 per hour The following data pertain to June's operations: • Direct labor was $820,500 for 147,000 hours worked • Direct material purchases were 110,000 kilograms for $485,000 • Variable manufacturing overhead incurred was $986,000 • Fixed manufacturing overhead incurred was $1,154,500 • 93,000 kilograms of direct materials were used • The company sold 42,000 units at $130 each • Variable manufacturing overhead is applied based on direct labor hours • 46,000 units were produced during the year • Budgeted production was 45,000 units • At the beginning of June there were no inventories. The labor efficiency variance is: Do not round intermediate calculations. $61,500 U $61,500 F $54,000 F $54.000 U

ABC Company makes a single product which has the following standards: Direct materials 2 kilograms $4.30 per kilogram Direct labor 3 hours $6.00 per hour Variable overhead 3 hours $6.50 per hour Fixed overhead 3 hours $9.00 per hour The following data pertain to June's operations: • Direct labor was $820,500 for 147,000 hours worked • Direct material purchases were 110,000 kilograms for $485,000 • Variable manufacturing overhead incurred was $986,000 • Fixed manufacturing overhead incurred was $1,154,500 • 93,000 kilograms of direct materials were used • The company sold 42,000 units at $130 each • Variable manufacturing overhead is applied based on direct labor hours • 46,000 units were produced during the year • Budgeted production was 45,000 units • At the beginning of June there were no inventories. The labor efficiency variance is: Do not round intermediate calculations. $61,500 U $61,500 F $54,000 F $54.000 U

Name: ABC Company makes a single product which has the following standards:D
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Description: ABC Company makes a single product which has the following standards:Direct materials 2 kilograms $4.30 per kilogramDirect labor 3 hours $6.00 per hourVariable overhead 3 hours $6.50 per hourFixed overhead 3 hours $9.00 per hour ABC Company makes a s

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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