Agnew Corporation uses a standard cost system. The following information was provided for the period that just ended: Actual price per kilogram $1.76 Actual kilograms of material used 61,500 Actual hourly labor rate $20.60 Actual hours of production 8,850 Standard price per kilogram $1.80 Standard kilograms per completed unit 5 kilograms Standard hourly labor rate $20 Standard time per completed unit 3/4 hr. $64,500 Actual total factory overhead Fixed factory overhead Standard fixed factory overhead rate Standard variable factory overhead rate Maximum plant capacity Plant operated during the period Units completed during the period $30,000 $3 per labor hour $5 per labor hour 10,000 hours 9,000 hours 12,000 The variable factory overhead controllable variance is: a. $10,500 favorable b. $7,500 favorable c. $7,500 unfavorable d. $10,500 unfavorable

Agnew Corporation uses a standard cost system. The following information was provided for the period that just ended: Actual price per kilogram $1.76 Actual kilograms of material used 61,500 Actual hourly labor rate $20.60 Actual hours of production 8,850 Standard price per kilogram $1.80 Standard kilograms per completed unit 5 kilograms Standard hourly labor rate $20 Standard time per completed unit 3/4 hr. $64,500 Actual total factory overhead Fixed factory overhead Standard fixed factory overhead rate Standard variable factory overhead rate Maximum plant capacity Plant operated during the period Units completed during the period $30,000 $3 per labor hour $5 per labor hour 10,000 hours 9,000 hours 12,000 The variable factory overhead controllable variance is: a. $10,500 favorable b. $7,500 favorable c. $7,500 unfavorable d. $10,500 unfavorable

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

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