Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased at $3.80; used 3,500 sheets Copper 3,000 sheets purchased at $8.40; used 2,600 sheets Direct Labor Regular time 5,200 hours at $16 (pre-contract settlement) Regular time 900 hours at $17 (post-contract settlement) Variable Overhead $23.300 (based on 4.175 machine hours)

Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased at $3.80; used 3,500 sheets Copper 3,000 sheets purchased at $8.40; used 2,600 sheets Direct Labor Regular time 5,200 hours at $16 (pre-contract settlement) Regular time 900 hours at $17 (post-contract settlement) Variable Overhead $23.300 (based on 4.175 machine hours)

Name: Determine the following:a. Total material price varianceb. Total mate
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Description: Determine the following:a. Total material price varianceb. Total material usage (quantity) variancec. Labor rate varianced. Labor efficiency variancee. Variable overhead spending variancef. Variable overhead efficiency varianceg. Fixed overhead spen

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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