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Paragon Industries manufactures a single product in which variable manufacturing overhead is assigned based on standard direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Direct materials Direct labor Variable Standard Standard Price or Standard Quantity Rate Cost 2.5 pounds $5.80 per pound $14.50 0.6 hours $18.50 per hour $11.10 manufacturing 0.6 hours $4.75 per hour $2.85 overhead During April, the following activity was recorded by the company: . The company produced 6,000 units during the month. ⚫ A total of 16,000 pounds of material were purchased at a cost of $46,400. . • . There was no beginning inventory of materials on hand at the start of the month; at the end of the month, 3,200 pounds of material remained in the warehouse. During April, 3,500 direct labor hours were worked at a rate of $18.90 per hour. Variable manufacturing overhead costs during April totaled $8,000. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is

Paragon Industries manufactures a single product in which variable manufacturing overhead is assigned based on standard direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Direct materials Direct labor Variable Standard Standard Price or Standard Quantity Rate Cost 2.5 pounds $5.80 per pound $14.50 0.6 hours $18.50 per hour $11.10 manufacturing 0.6 hours $4.75 per hour $2.85 overhead During April, the following activity was recorded by the company: . The company produced 6,000 units during the month. ⚫ A total of 16,000 pounds of material were purchased at a cost of $46,400. . • . There was no beginning inventory of materials on hand at the start of the month; at the end of the month, 3,200 pounds of material remained in the warehouse. During April, 3,500 direct labor hours were worked at a rate of $18.90 per hour. Variable manufacturing overhead costs during April totaled $8,000. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...
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The material quantity variance for April is

Paragon Industries manufactures a single product in which variable manufacturing overhead is assigned based on standard direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Direct materials Direct labor Variable Standard Standard Price or Standard Quantity Rate Cost 2.5 pounds $5.80 per pound $14.50 0.6 hours $18.50 per hour $11.10 manufacturing 0.6 hours $4.75 per hour $2.85 overhead During April, the following activity was recorded by the company: . The company produced 6,000 units during the month. ⚫ A total of 16,000 pounds of material were purchased at a cost of $46,400. . • . There was no beginning inventory of materials on hand at the start of the month; at the end of the month, 3,200 pounds of material remained in the warehouse. During April, 3,500 direct labor hours were worked at a rate of $18.90 per hour. Variable manufacturing overhead costs during April totaled $8,000. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is
Transcribed Image Text:Paragon Industries manufactures a single product in which variable manufacturing overhead is assigned based on standard direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Direct materials Direct labor Variable Standard Standard Price or Standard Quantity Rate Cost 2.5 pounds $5.80 per pound $14.50 0.6 hours $18.50 per hour $11.10 manufacturing 0.6 hours $4.75 per hour $2.85 overhead During April, the following activity was recorded by the company: . The company produced 6,000 units during the month. ⚫ A total of 16,000 pounds of material were purchased at a cost of $46,400. . • . There was no beginning inventory of materials on hand at the start of the month; at the end of the month, 3,200 pounds of material remained in the warehouse. During April, 3,500 direct labor hours were worked at a rate of $18.90 per hour. Variable manufacturing overhead costs during April totaled $8,000. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is
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