Bramble Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. Actual Standard $1.90 10,700 $171,360 15,300 Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour $2.10 11,300 $175,500 15,000 $212,930 $215,730 43,500 $73,950 $3.00 $1.70 Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor h jobs were sold for $453,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used.
Bramble Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. Actual Standard $1.90 10,700 $171,360 15,300 Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour $2.10 11,300 $175,500 15,000 $212,930 $215,730 43,500 $73,950 $3.00 $1.70 Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor h jobs were sold for $453,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Bramble Corporation accumulates the following data relative to jobs started and finished during the month of June 2020.
Costs and Production Data
Raw materials unit cost
Raw materials units
Direct labor payroll
Direct labor hours
Manufacturing overhead incurred
Manufacturing overhead applied
Machine hours expected to be used at normal capacity
Budgeted fixed overhead for June
Variable overhead rate per machine hour
Fixed overhead rate per machine hour
Actual
$2.10
11,300
$175,500
15,000
$212,930
Standard
$1.90
10,700
$171,360
15,300
$215,730
43,500
$73,950
$3.00
$1.70
Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The
jobs were sold for $453,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials
purchased equaled the amount used.
Transcribed Image Text:Compute all of the variances for (1) direct
materials and (2) direct labor.
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