Garrison Manufacturing has the following standard cost sheet for one of its products: Direct materials (5 m@ $6) $30 Direct labour (1.5 hours @ $10) 15 Variable overhead (1 hour @$7) Fixed overhead (2 hours @ $3) Standard unit cost $8 *Rate based on expected activity of 12.000 hours. During the most recent year, the following actual results were recorded: Production 13,000 units Fixed overhead $36,000 Variable overhead $60,000 Direct materials (62,500 m purchased) $382,500 Direct labour (15,900 hours) $182,580 Required: Compute the following variances: 1. Direct materials price, usage and total direct material variances 2. Direct labour rate, efficiency and total direct labour variances Provide the formula and detailed calculations, do not just write the answer. 6.

Garrison Manufacturing has the following standard cost sheet for one of its products: Direct materials (5 m@ $6) $30 Direct labour (1.5 hours @ $10) 15 Variable overhead (1 hour @$7) Fixed overhead (2 hours @ $3) Standard unit cost $8 *Rate based on expected activity of 12.000 hours. During the most recent year, the following actual results were recorded: Production 13,000 units Fixed overhead $36,000 Variable overhead $60,000 Direct materials (62,500 m purchased) $382,500 Direct labour (15,900 hours) $182,580 Required: Compute the following variances: 1. Direct materials price, usage and total direct material variances 2. Direct labour rate, efficiency and total direct labour variances Provide the formula and detailed calculations, do not just write the answer. 6.

Name: Garrison Manufacturing has the following standard cost sheet for one
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Description: Garrison Manufacturing has the following standard cost sheet for one of its products:Direct materials (5 m@ $6)$30Direct labour (1.5 hours @ $10)15Variable overhead (1 hour @$7)7Fixed overhead (2 hours @ $3)Standard unit cost$58*Rate based on expect

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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