Adamantane Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 15,000 units of product were as follows: Standard Costs Actual Costs Direct materials 5,000 lbs. at $50.00 4,950 lbs. at $50.60 3,000 hrs. at $25.00 Rates per direct labor hr., Direct labor 2,945 hrs. at $25.60 Factory overhead based on 100% of normal capacity of 3,200 direct labor hrs.: Variable cost, $5.50 $16,680 variable cost Fixed cost, $4.00 $12,800 fixed cost Each unit requires 0.2 hour of direct labor. Instructions Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time vari- ance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.

Adamantane Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 15,000 units of product were as follows: Standard Costs Actual Costs Direct materials 5,000 lbs. at $50.00 4,950 lbs. at $50.60 3,000 hrs. at $25.00 Rates per direct labor hr., Direct labor 2,945 hrs. at $25.60 Factory overhead based on 100% of normal capacity of 3,200 direct labor hrs.: Variable cost, $5.50 $16,680 variable cost Fixed cost, $4.00 $12,800 fixed cost Each unit requires 0.2 hour of direct labor. Instructions Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time vari- ance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.

Name: a.Direct Materials Price VarianceWrongDirect Materials Quantity Varia
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Description: a.Direct Materials Price VarianceWrongDirect Materials Quantity VarianceWrongTotal Direct Materials Cost VarianceWrongb.Direct Labor Rate VarianceWrongDirect Labor (Time) Efficiency VarianceWrongTotal Direct Labor Cost VarianceWrongC.Fixed Factory O

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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