Dixboro Company manufactures one product and accounts for costs using a job cost system. You have obtained the following information from the corporation’s books and records for the fiscal year ended May 31, year 1: Total manufacturing cost during the year was $18,000,000 based on actual direct material, actual direct labor, and applied manufacturing overhead. Manufacturing overhead was applied to work in process at 150 percent (1.5 times) direct labor dollars. Applied manufacturing overhead for the year was 30 percent of the total manufacturing cost during the year. Required: Compute actual direct material used, actual direct labor, and applied manufacturing overhead. (Hint: The total of these costs is $18,000,000.) (Round intermediate calculations to 2 decimal places.)
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.
Dixboro Company manufactures one product and accounts for costs using a
- Total
manufacturing cost during the year was $18,000,000 based on actual direct material, actual direct labor, and applied manufacturingoverhead . - Manufacturing overhead was applied to work in process at 150 percent (1.5 times) direct labor dollars. Applied manufacturing overhead for the year was 30 percent of the total manufacturing cost during the year.
Required:
Compute actual direct material used, actual direct labor, and applied manufacturing overhead. (Hint: The total of these costs is $18,000,000.) (Round intermediate calculations to 2 decimal places.)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
