II. HB Corporation in Delaware, U.S., makes and sells a single product. The company operates a standard costing system and a just-in-time purchasing and production system. No inventory of raw materials or finished goods is held. Details of the budget and actual data for the previous period are given below: Budget data Standard production costs per unit (currency in U.S. dollar, $): Direct material Direct labor Variable overheads1.25 hours at the rate of $6.00 per direct labor hour 8kg at the rate of $10.80 per kg 1.25 hours at the rate of $18.00 per hour 86.40 22.50 7.50 Standard selling price: $180 per unit Budgeted fixed production overheads: $170 000 Budgeted production and sales: 10 000 units Actual data Direct material: 74 000kg at the rate of$11.20 per kg Direct labor: 10,800 hours at the rate of „$19.00 per hour Variable overheads: $70,000 Actual selling price: $184 per unit Actual fixed production overheads: $168 000 Actual production and sales: 9000 units Requirements 3. Calculate the variances that would be different and any additional variances that would be required if the reconciliation statement was prepared using standard absorntion costing

II. HB Corporation in Delaware, U.S., makes and sells a single product. The company operates a standard costing system and a just-in-time purchasing and production system. No inventory of raw materials or finished goods is held. Details of the budget and actual data for the previous period are given below: Budget data Standard production costs per unit (currency in U.S. dollar, $): Direct material Direct labor Variable overheads1.25 hours at the rate of $6.00 per direct labor hour 8kg at the rate of $10.80 per kg 1.25 hours at the rate of $18.00 per hour 86.40 22.50 7.50 Standard selling price: $180 per unit Budgeted fixed production overheads: $170 000 Budgeted production and sales: 10 000 units Actual data Direct material: 74 000kg at the rate of$11.20 per kg Direct labor: 10,800 hours at the rate of „$19.00 per hour Variable overheads: $70,000 Actual selling price: $184 per unit Actual fixed production overheads: $168 000 Actual production and sales: 9000 units Requirements 3. Calculate the variances that would be different and any additional variances that would be required if the reconciliation statement was prepared using standard absorntion costing

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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