Blue Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.40 $2.20 Raw materials units used 11,000 10,100 Direct labor payroll $177,600 $173,280 Direct labor hours worked 14,800 15,200 Manufacturing overhead incurred $235,636 Manufacturing overhead applied $238,336 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $70,550 Variable overhead rate per machine hour $3.20 Fixed overhead rate per machine hour $1.70 Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $467,000. Selling and administrative expenses were $36,500. Assume that the amount of raw materials purchased equaled the amount used.
Blue Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.40 $2.20 Raw materials units used 11,000 10,100 Direct labor payroll $177,600 $173,280 Direct labor hours worked 14,800 15,200 Manufacturing overhead incurred $235,636 Manufacturing overhead applied $238,336 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $70,550 Variable overhead rate per machine hour $3.20 Fixed overhead rate per machine hour $1.70 Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $467,000. Selling and administrative expenses were $36,500. Assume that the amount of raw materials purchased equaled the amount used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 11
Blue Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.
Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $467,000. Selling and administrative expenses were $36,500. Assume that the amount of raw materials purchased equaled the amount used.
|
Costs and Production Data
|
Actual
|
Standard
|
||
| Raw materials unit cost | $2.40 | $2.20 | ||
| Raw materials units used | 11,000 | 10,100 | ||
| Direct labor payroll | $177,600 | $173,280 | ||
| Direct labor hours worked | 14,800 | 15,200 | ||
| Manufacturing |
$235,636 | |||
| Manufacturing overhead applied | $238,336 | |||
| Machine hours expected to be used at normal capacity | 41,500 | |||
| Budgeted fixed overhead for June | $70,550 | |||
| Variable overhead rate per machine hour | $3.20 | |||
| Fixed overhead rate per machine hour | $1.70 |
Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $467,000. Selling and administrative expenses were $36,500. Assume that the amount of raw materials purchased equaled the amount used.
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