Melancholic Company uses a standard cost accounting system to account for the manufacture of exhaust fans. In July 2020, it accumulates the following data relative to 1,800 units started and finished. Cost and Production Data Raw materials Units purchased Units used Unit cost Direct labor Hours worked Hourly rate Manufacturing overhead Incurred Applied Actual 21,000 21,000 $3.70 3,450 $11.50 $94,800 Standard 22,000 $3.50 3,600 $12.00 $100,800 Manufacturing overhead was applied on the basis of direct labor hours. Normal capacity for th month was 3,400 direct labor hours. At normal capacity, budgeted overhead costs were $16 pe labor hour variable and $12 per labor hour fixed. Total budgeted fixed overhead costs were $40,800. Jobs finished during the month were sold for $270,000. Selling and administrative expenses were $20,000. Instructions: a) Compute all of the variances for (1) direct materials and (2) direct labor. b) Compute the total overhead variance. c) Prepare an income statement for management. (Ignore income taxes)

Melancholic Company uses a standard cost accounting system to account for the manufacture of exhaust fans. In July 2020, it accumulates the following data relative to 1,800 units started and finished. Cost and Production Data Raw materials Units purchased Units used Unit cost Direct labor Hours worked Hourly rate Manufacturing overhead Incurred Applied Actual 21,000 21,000 $3.70 3,450 $11.50 $94,800 Standard 22,000 $3.50 3,600 $12.00 $100,800 Manufacturing overhead was applied on the basis of direct labor hours. Normal capacity for th month was 3,400 direct labor hours. At normal capacity, budgeted overhead costs were $16 pe labor hour variable and $12 per labor hour fixed. Total budgeted fixed overhead costs were $40,800. Jobs finished during the month were sold for $270,000. Selling and administrative expenses were $20,000. Instructions: a) Compute all of the variances for (1) direct materials and (2) direct labor. b) Compute the total overhead variance. c) Prepare an income statement for management. (Ignore income taxes)

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Description: Please don't give image format Melancholic Company uses a standard cost accounting system to account for the manufactureof exhaust fans. In July 2020, it accumulates the following data relative to 1,800 units startedand finished.Cost and Production D

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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