Pippin Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labe hours. Inputs Direct materials Direct labor Variable manufacturing overhead The company has reported the following actual results for the product for June: Actual output Raw materials purchased Actual price of raw materials Raw materials used in production Actual direct labor-hours Actual direct labor rate Actual variable overhead rate Multiple Choice The variable overhead efficiency variance for the month is closest to: $2,450 F $2,400 U Standard Quantity or Hours per Unit of Output $2,400 F $2,450 U 5.0 grams 0.30 hours 0.30 hours Standard Price or Rate $7.00 per gram $ 21.30 per hour $9.60 per hour 8,500 units 48,100 grams $ 7.70 per gram 42,490 grams 2,300 hours $21.70 per hour $9.80 per hour Pippin incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labehours.Standard Quantity orInputsHours per Unit ofOutput5.0 gramsDirect materialsDirect labor0.30 hoursVariable manufacturing overhead0.30 hoursThe company has reported the following actual results for the product for JuneActual outputRaw materials purchasedActual price of raw materialsRaw materials used in productionActual direct labor-hoursActual direct labor rateActual variable overhead rateThe variable overhead efficiency variance for the month is closest toMultiple ChoiceO$2.450 F$2,400 U$2.400 F$2,450 UStandard Price or Rate:$ 7.00 per gram$ 21.30 per hour$ 9.60 per hour8,500 units48, 100 grams$ 7.70 per gram42,490 grams2,300 hours$21.70 per hour$ 9.80 per hour.

Variable Overhead Efficiency VarianceVariable Overhead Efficiency Variance is a variance analysis…

Answered: Pippin incorporated has provided the…

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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Pippin Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labe hours. Inputs Direct materials Direct labor Variable manufacturing overhead The company has reported the following actual results for the product for June: Actual output Raw materials purchased Actual price of raw materials Raw materials used in production Actual direct labor-hours Actual direct labor rate Actual variable overhead rate Multiple Choice The variable overhead efficiency variance for the month is closest to: $2,450 F $2,400 U Standard Quantity or Hours per Unit of Output $2,400 F $2,450 U 5.0 grams 0.30 hours 0.30 hours Standard Price or Rate $7.00 per gram $ 21.30 per hour $9.60 per hour 8,500 units 48,100 grams $ 7.70 per gram 42,490 grams 2,300 hours $21.70 per hour $9.80 per hour

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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