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Coronado Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-1.50 hours at $11.10 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (3,660 pounds) Direct labor (5,140 hours) Variable overhead Fixed overhead Total manufacturing costs $25,986 59,110 44,098 $7.00 16.65 21,202 $150.396 9.00 The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00+ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 9.000 direct labor hours (6.000 units) for the month. The master budget showed total variable costs of $54,000 ($6.00 per hour) and total fixed overhead costs of $54,000 ($6.00 per hour). Actual costs for October in producing 3,500 units were as follows. 9.00 $41.65 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

Coronado Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-1.50 hours at $11.10 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (3,660 pounds) Direct labor (5,140 hours) Variable overhead Fixed overhead Total manufacturing costs $25,986 59,110 44,098 $7.00 16.65 21,202 $150.396 9.00 The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00+ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 9.000 direct labor hours (6.000 units) for the month. The master budget showed total variable costs of $54,000 ($6.00 per hour) and total fixed overhead costs of $54,000 ($6.00 per hour). Actual costs for October in producing 3,500 units were as follows. 9.00 $41.65 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

FINANCIAL ACCOUNTING
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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The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. (a) Compute all of the materials and labor variances. Total materials variance Materials price variance $ Materials quantity variance S Total labor variance Labor price variance Labor quantity variance (b) $ Total overhead variance $ Trythonk and Madis S Compute the total overhead varlance. $
Transcribed Image Text:The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. (a) Compute all of the materials and labor variances. Total materials variance Materials price variance $ Materials quantity variance S Total labor variance Labor price variance Labor quantity variance (b) $ Total overhead variance $ Trythonk and Madis S Compute the total overhead varlance. $
Coronado Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-1.50 hours at $11.10 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (3,660 pounds) Direct labor (5,140 hours) Variable overhead Fixed overhead Total manufacturing costs The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00+ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 9,000 direct labor hours (6,000 units) for the month. The master budget showed total variable costs of $54,000 ($6.00 per hour) and total fixed overhead costs of $54,000 ($6.00 per hour). Actual costs for October in producing 3,500 units were as follows. $25,986 59,110 44,098 21,202 $7.00 16.65 $150.396 9.00 9.00 $41.65 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
Transcribed Image Text:Coronado Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-1.50 hours at $11.10 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (3,660 pounds) Direct labor (5,140 hours) Variable overhead Fixed overhead Total manufacturing costs The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00+ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 9,000 direct labor hours (6,000 units) for the month. The master budget showed total variable costs of $54,000 ($6.00 per hour) and total fixed overhead costs of $54,000 ($6.00 per hour). Actual costs for October in producing 3,500 units were as follows. $25,986 59,110 44,098 21,202 $7.00 16.65 $150.396 9.00 9.00 $41.65 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
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