What was the variable overhead rate variance? Henderson Corporation makes a product with the following standard costs:Standard Price or Rate Standard Cost Per UnitStandard Quantity or HoursDirect materials: 3.8 gramsDirect labor: 0.6 hours$6.50 per gram$9.80 per hourVariable overhead: 0.6 hours$6.80per hourDescriptionOriginally budgeted outputActual output$24.70$5.88$4.08The company reported the following results concerning this product in July:Raw materials used in productionActual direct labor-hoursPurchases of raw materialsAmount6,500 units6,300 units24,200 grams3,900 hours26,500 gramsActual price of raw materials purchased $6.60 per gramActual direct labor rateActual variable overhead rate$10.20 perhour$6.50 per hourThe company applies variable overhead on the basis of direct labor hours. The directmaterials purchase variance is computed when the materials are purchased.What was the variable overhead rate variance for July?

Explanation of Standard Cost System: A standard cost system is a cost accounting methodology where…

Answered: Henderson Corporation makes a product…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours 7.6 grams 0.1 hours 0.1 hours Direct materials. Direct labor. Variable overhead.. Actual direct labor-hours.... Actual cost of raw materials purchases.. Actual direct labor cost.... Actual variable overhead cost. Standard Price or Rate Standard Cost Per Unit $6.00 per gram $16.00 per hour $6.00 per hour The company reported the following results concerning this product in June. Originally budgeted output.. Actual output... 5,400 units 5,500 units 39,200 grams 44,100 grams Raw materials used in production Purchases of raw materials 510 hours $260, 190 $240 U $216 U $240 F $216 F $7,803 $2,754 $45.60 $1.60 $0.60 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is:
A Company establishes the following standards for the costs of one unit of its product. The standard production overhead costs per unit are bascd on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty 3.00 kg | Direct Material Direct Labor Variable Overhead Fixed Overhead* |Total *based on practical capacity of 20,000 direct-labor hour per month Std Price/Rate $ 8.25 per kg $ 10.00 per hour $ 10.00 per hour $ 7.50 per hour 24.75 $ 20.00 2.00 hour $ 20.00 2.00 hour 15.00 2.00 hour 79.75 During December 2020, the Company purchased 30,000 kg of direct material at a total cost of $246,000. The total wages for December were $260,000, 75% of which were for direct labor. The Company manufactured 9,500 units of product during December 2020, using 28,400 kg of the direct material purchased in December and 18,900 direct-labor hours. Actual variable and fixed overhead cost were $200,000 and $150,000, respectively. The scheduled production for the month was…
Compute the target selling price per unit under absorption costing
What is the standard cost of one unit of product x-core? Please solve this problem general Accounting
Selected costs associated with a product are as follows: Total standard hours for units produced Total actual direct labor cost Actual per hour labor rate 5,000 $ 1,11,625.00 $ 23.50 $ 24.00 Standard per hour labor rate What amount is the total direct labor price variance? a. $2,375 unfavorable. b. $2,375 favorable. c. $2,500 unfavorable. d. $2,500 favorable.
A standard cost card for one unit of a product may look like the following: Direct materials (4 pounds @ $1.25 per pound) $5.00 Direct labor (0.1 DLH @ $18 per hour) 1.80 Variable overhead (0.1 DLH @ $2.00 per hour) 0.20 Fixed overhead (0.1 DLH @ $4.60 per hour) 0.46 Total cost per unit $7.46 The standard cost to produce one unit is $7.46. The standard cost to produce 600 units are $ Of course, this is a simplification as the standard cost does not take fixed and variable costs into account. However, if the firm is producing at or near capacity, then the cost per unit of $7.46 could be multiplied by total units to get total standard cost. The standard cost card gives both unit and cost standards. The direct materials total of $5.00 is based on the use of four pounds of material at $1.25 per pound. Similarly, it should take six minutes (0.1 direct labor hour) to produce one unit. This makes it easy to determine total quantities and cost would be for multiple units. If 400 units were…
Nevada Corporation makes a product with the following standard costs: Standard Price or Rate Standard Quantity or Hours 6.4 ounces $ 0.4 hours S 0.4 hours $ 3.00 per ounce 13.00 per hour 5.00 per hour The company reported the following results concerning this product in March. Direct materials Direct labor Variable overhead. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate $ S $ O $3,277 F O $3,390 U O $3,390 F O $3,277 U Standard Cost Per Unit S S S 4,800 units 4,900 units 30,230 ounces 1,910 hours 32,600 ounces 2.90 per ounce 12.40 per hour 4.90 per hour 19.20 5.20 2.00 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is:
Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Direct materials Direct labor Variable overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Standard Price or Rate $ 2.00 per ounce $10.00 per hour. $4.00 per hour 5.9 ounces 9.8 hours 9.8 hours The materials price variance for June is: 3,700 units 3,300 units 20,900 ances 22,000 ounces 5,500 hours $ 42,400 $ 13,700 $ 3,850 Standard Cost Per Unit $ 11.80 $ 8.00 $.3.20 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
Vitex, Inc. manufactures a popular consumer product and It has provided the following data excerpts from Its standard cost system: (2) Standard Standard (1) standard Quantity or Price Cost or Rate $17.10 per pound $15.60 per hour $ 9.20 per hour Inputs Direct materials (1) x (2) $ 42.75 $ 15.60 $ 9.20 $ 67.55 Hours 2.50 pounds 1.00 hours Direct labor Variable manufacturing overhead 1.00 hours Total standard cost per unit Variances Reported Quantity or Efficiency $ 34, 200 U $ 15,680 U Total Standard Price or Rate $769,500 $ 13,630 F $280, 800 $ 3,800 U Cost* Direct materials Direct labor Variable manufacturing overhead $165,600 $ 4,600 F 24 *Applied to Work In Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materlals purchased during the period were used in production. Work In process Inventories are insignificant and can be ignored. Requlred: 1. How many units were produced last period? 2. How…

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