Kartman Corporation makes a product with the following standard costs: Standard Quantity or Standard Price. or Standard Cost Per Hours Rate Unit Direct materials 6.5 pounds $7 per pound $45.50 Direct labor 0.6 hours $24 per hour $14.40 Variable 0.6 hours $4 per hour $2.40 overhead In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of direct material and 2,290 direct labor hours to produce this output. During the month, the company purchased 25,400 pounds of direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. 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 a. $210 U b. $210 F c. $229 F d. $229 U
Kartman Corporation makes a product with the following standard costs: Standard Quantity or Standard Price. or Standard Cost Per Hours Rate Unit Direct materials 6.5 pounds $7 per pound $45.50 Direct labor 0.6 hours $24 per hour $14.40 Variable 0.6 hours $4 per hour $2.40 overhead In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of direct material and 2,290 direct labor hours to produce this output. During the month, the company purchased 25,400 pounds of direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931. 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 a. $210 U b. $210 F c. $229 F d. $229 U
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...
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