Chillco Corporation produces contalners of frozen food. During April, Chillco produced 720 cases of food and incurred the following actual costs. $ 5,600 21,e00 69,750 34,500 Variable overhead Fixed overhead Actual labor cost (4,500 direct-labor hours) Actual material cost (15,000 pounds purchased and used) Overhead is budgeted and applied using direct-labor hours In a standard costing system. Standard cost and annual budget Information are as follows: standard Costs per Case Direct labor (6 hours at $15 per hour) Direct material (20 pounds at $2.10 per pound) Variable overhead (6 direct-labor hours at $1.60 per hour) Fixed overhead (6 direct-labor hours at $4 per hour) $ 90.ee 42.e0 9.60 24.e0 Total $165.60 Annual Budget Information $ 96,000 $240,000 60, 000 direct-labor hours Variable overhead Fixed overhead Planned activity for year Requlred: Compute the following cost varlances from the avallable data. (Indicate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (I.e., zero varlance). Do not round Intermedlate calculatlons.) Direct-material price variance Direct-material purchase price variance 42 Direct-material quantity variance

Chillco Corporation produces contalners of frozen food. During April, Chillco produced 720 cases of food and incurred the following actual costs. $ 5,600 21,e00 69,750 34,500 Variable overhead Fixed overhead Actual labor cost (4,500 direct-labor hours) Actual material cost (15,000 pounds purchased and used) Overhead is budgeted and applied using direct-labor hours In a standard costing system. Standard cost and annual budget Information are as follows: standard Costs per Case Direct labor (6 hours at $15 per hour) Direct material (20 pounds at $2.10 per pound) Variable overhead (6 direct-labor hours at $1.60 per hour) Fixed overhead (6 direct-labor hours at $4 per hour) $ 90.ee 42.e0 9.60 24.e0 Total $165.60 Annual Budget Information $ 96,000 $240,000 60, 000 direct-labor hours Variable overhead Fixed overhead Planned activity for year Requlred: Compute the following cost varlances from the avallable data. (Indicate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (I.e., zero varlance). Do not round Intermedlate calculatlons.) Direct-material price variance Direct-material purchase price variance 42 Direct-material quantity variance

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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