Direct materials Direct labor Variable manufacturing overhead Quantity Standard Price or or Hours 5 pounds 2 hours 2 hours Rate $11.00 per pound $17.00 per hour $3.60 per hour uring the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. . All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. • The actual variable overhead cost incurred during the period was $25,000. Standard Cost $ 55.00 $ 34.00 $ 7.20 ssuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variabl verhead efficiency variance?

Direct materials Direct labor Variable manufacturing overhead Quantity Standard Price or or Hours 5 pounds 2 hours 2 hours Rate $11.00 per pound $17.00 per hour $3.60 per hour uring the most recent period, the following additional information was available: • 20,000 pounds of material was purchased at a cost of $10.50 per pound. . All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. • The actual variable overhead cost incurred during the period was $25,000. Standard Cost $ 55.00 $ 34.00 $ 7.20 ssuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variabl verhead efficiency variance?

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Description: Direct materialsDirect laborVariable manufacturing overheadMultiple Choiceuring the most recent period, the following additional information was available:20,000 pounds of material was purchased at a cost of $10.50 per pound.. All of the material th

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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Concept explainers

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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Question

Direct materials
Direct labor
Variable manufacturing overhead
Multiple Choice
uring the most recent period, the following additional information was available:
20,000 pounds of material was purchased at a cost of $10.50 per pound.
. All of the material that was purchased was used to produce 3,900 units.
O
8,000 direct labor-hours were recorded at a total cost of $132,000.
• The actual variable overhead cost incurred during the period was $25,000.
$745 U
Standard
Quantity
$720 F
or Hours
assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable
verhead efficiency variance?
$720 U
5 pounds
2 hours
2 hours
$745 F
Standard Price or
Rate
$11.00 per pound
$17.00 per hour
$ 3.60 per hour
Standard
Cost
$ 55.00
$ 34.00
$ 7.20

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