Kartman Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Standard Standard Quantity Price or Cost Per or Hours Rate Unit 7.7 pounds $8.20 0.3 0.3 hours $36.00 Multiple Choice $451 U $771 F $771 U $451 F hours $5.20 per $ pound 63.14 per $ hour 10.80 $ per hour 1.56 In June the company's budgeted production was 4,600 units but the actual production was 4,700 units. The company used 23,350 pounds of the direct material and 2,410 direct labor-hours to produce this output. During the month, the company purchased 26,600 pounds of the direct material at a cost of $182,180. The actual direct labor cost was $58,221 and the actual variable overhead cost was $11,761. 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 rate variance for June is:

Kartman Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Standard Standard Quantity Price or Cost Per or Hours Rate Unit 7.7 pounds $8.20 0.3 0.3 hours $36.00 Multiple Choice $451 U $771 F $771 U $451 F hours $5.20 per $ pound 63.14 per $ hour 10.80 $ per hour 1.56 In June the company's budgeted production was 4,600 units but the actual production was 4,700 units. The company used 23,350 pounds of the direct material and 2,410 direct labor-hours to produce this output. During the month, the company purchased 26,600 pounds of the direct material at a cost of $182,180. The actual direct labor cost was $58,221 and the actual variable overhead cost was $11,761. 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 rate variance for June is:

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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Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct labour standards for one unit of Carpex follow: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 4.10 kilograms $ 2.20 per kilogram $ 9.02 Direct labour 0.42 hour $ 8.00 per hour a 3.36 Variable overhead 0.42 hour $ 1.30 per hour 0.55 The budgeted fixed overhead cost is $14, 619 per month. The denominator activity level of the allocation base is 1,596 direct labour - hours. During the most recent month, the following activity was recorded: a. 9, 100 kilograms of material were purchased at a cost of $2.22 per kilogram. b. All of the material purchased was used to produce 3,800 units of Zoom. c. A total of 790 hours of direct labour time was recorded at a total labour cost of 9,243. d. The variable overhead cost was $1,580, and the fixed overhead cost was $31, 713.
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Tharaldson Corporation makes a product with the following standard costs. Direct materials. Direct labor Variable overhead The variable overhead rate variance for June is: 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 Multiple Choice $1,200 F Standard Quantity or Hours $1,212 U 6.0 ounces 0.3 hours 0.3 hours $ 42,300 $ 13,600 $ 3,700 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. $1,212 F Standard Price or Rate $3.00 per ounce $11.00 per hour $5.00 per hour 3,600 units 3,200 units 21,000 ounces 22,100 ounces 500 hours Standard Cost Per Unit $18.00 $3.30 $ 1.50
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Gail Cleaners produces a commercial cleaning compound known as Carpex. The direct materials and direct labour standards for one unit of Carpex follow: Direct materials Direct labour Variable overhead Standard Quantity or Hours 4.10 kilograms 0.40 hour 0.40 hour Standard Price or Rate $ 2.20 per kilogram $10.00 per hour $ 1.30 per hour Standard Cost $9.02 4.00 0.52 The budgeted fixed overhead cost is $14,614 per month. The denominator activity level of the allocation base is 800 direct labour- hours. Materials price variance Materials quantity variance During the most recent month, the following activity was recorded: a. 9,900 kilograms of material were purchased at a cost of $2.22 per kilogram. b. A total of 850 hours of direct labour time was recorded at a total labour cost of $9,110. c. The variable overhead cost was $1,580, and the fixed overhead cost was $14,704. Assume that the company produced 1,600 units during the month, using 6,600 kilograms of material in the production…