Kent County Company produces a single product. The standard cost card for the product follows: 3 pounds @ $4/pound = $12 per unit 2 hours @ $8/hour - $16 per unit 2 hours @ $5/hour $10 per unit Direct material. Direct labor. Variable overhead. During a recent period the company produced 500 units of product. Various costs associated with the production of these units are given below: Units produced. Direct material used. 500 Direct material purchased (3,000 pounds) Direct labor cost (950 hours).. Variable overhead cost incurred 1,600 pounds $12,300 $7,790 $4,655 The variable overhead efficiency variance is: $500 F $500 U $245 F $250 F
Kent County Company produces a single product. The standard cost card for the product follows: 3 pounds @ $4/pound = $12 per unit 2 hours @ $8/hour - $16 per unit 2 hours @ $5/hour $10 per unit Direct material. Direct labor. Variable overhead. During a recent period the company produced 500 units of product. Various costs associated with the production of these units are given below: Units produced. Direct material used. 500 Direct material purchased (3,000 pounds) Direct labor cost (950 hours).. Variable overhead cost incurred 1,600 pounds $12,300 $7,790 $4,655 The variable overhead efficiency variance is: $500 F $500 U $245 F $250 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kent County Company produces a single product. The standard cost card for the product follows:
3 pounds @ $4/pound $12 per unit
2 hours @ $8/hour $16 per unit
2 hours @ $5/hour $10 per unit
Direct material.
Direct labor...
Variable overhead...
During a recent period the company produced 500 units of product. Various costs associated with the production of these units are given
below:
Units produced.
Direct material used...
500
Direct material purchased (3,000 pounds)
Direct labor cost (950 hours)..
Variable overhead cost incurred.
1,600 pounds
$12,300
$7,790
$4,655
The variable overhead efficiency variance is:
$500 F
$500 U
$245 F
$250 F
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