I. DIRECT COST AND OVERHEAD COST VARIANCE ANALYSIS Goldilock Inc. produces safe deposit boxes. During February 20X2, the company produces 1,050 units of product and incurred the following actual costs. Variable overhead |Actual labor cost (3.000 direct-labor hours) Actual material cost (2,200 lbs of metal purchased and used) $48,000 70.500 50,600 One unit of safe deposit box is planned to use 2 Ibs of metal and consume 3 direct-labor hours. Overhead is budgeted and applied using direct labor hour. Standard cost infomation are as follows: Standard costs per safe deposit box Direct labor Direct material Variable overhead $75 42 45 Required: 1. Calculate price and efficiency variance for direct material 2. Calculate price and efficiency variance for direct labor. 3. Calculate spending and efficiency variance for variable overhead. 4. Provide possible explanation on the result!

I. DIRECT COST AND OVERHEAD COST VARIANCE ANALYSIS Goldilock Inc. produces safe deposit boxes. During February 20X2, the company produces 1,050 units of product and incurred the following actual costs. Variable overhead |Actual labor cost (3.000 direct-labor hours) Actual material cost (2,200 lbs of metal purchased and used) $48,000 70.500 50,600 One unit of safe deposit box is planned to use 2 Ibs of metal and consume 3 direct-labor hours. Overhead is budgeted and applied using direct labor hour. Standard cost infomation are as follows: Standard costs per safe deposit box Direct labor Direct material Variable overhead $75 42 45 Required: 1. Calculate price and efficiency variance for direct material 2. Calculate price and efficiency variance for direct labor. 3. Calculate spending and efficiency variance for variable overhead. 4. Provide possible explanation on the result!

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Description: I. DIRECT COST AND OVERHEAD COST VARIANCE ANALYSISGoldilock Inc. produces safe deposit boxes. During February 20X2, the company produces 1,050 unitsof product and incurred the following actual costs.Variable overheadActual labor cost (3.000 direct-l

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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