Hello, The standards for one case of liquid weed killer are as follows: Direct materials 7 lbs @$8.25 pr/lb Direct labor 4 hours @$17.6/hr Variable overhead (based on machine hours) 1.3 hr @$6.05/hr During the week ending May 6, the following activity took place 5,632 machine hours were worked 32,239 lb of raw material were purchased for inventory at a total cost of $271,452. 4,560 cases of finished product were produced. 31,755 lb. of raw material were used. 17,839 labor hours were worked at an average rate of $17.88 per hour. $32,891 actual variable overhead costs were incurred. Calculate each of the following variances: Do not round intermediate calculations. Raw materials usage variance ??? Direct labor rate variance ??? Direct labor efficiency variance ??? Variable overhead spending variance ??? Variable overhead efficency variance ??? Thanks...
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Hello,
The standards for one case of liquid weed killer are as follows:
|
Direct materials |
7 lbs |
@$8.25 pr/lb |
|
Direct labor |
4 hours |
@$17.6/hr |
|
Variable |
1.3 hr |
@$6.05/hr |
During the week ending May 6, the following activity took place
5,632 machine hours were worked
32,239 lb of raw material were purchased for inventory at a total cost of $271,452.
4,560 cases of finished product were produced.
31,755 lb. of raw material were used.
17,839 labor hours were worked at an average rate of $17.88 per hour.
$32,891 actual variable overhead costs were incurred.
Calculate each of the following variances: Do not round intermediate calculations.
|
Raw materials usage variance |
??? |
|
Direct labor rate variance |
??? |
|
Direct labor efficiency variance |
??? |
|
Variable overhead spending variance |
??? |
|
Variable overhead efficency variance |
??? |
Thanks...
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