Homework Help is Here – Start Your Trial Now!
Business
Accounting
Pomona Sprout Products Inc. produces a number of products, including handmade large fiberglass planters for outdoor displays. The firm, which began operations at the beginning of the current year, uses a standard cost system. The standard costs for one large planter are provided below: Direct Materials (3kg @ C$ 8.00 per kg) C$ 24.00 Direct labor (2hrs @ C$ 15.00 per hr) C$ 30.00 Variable Overhead Fixed Overhead Standard Cost per unit C$ 24.00 C$ 6.00 C$ 84.00 The C$6.00 fixed overhead rate is based on total budgeted fixed overhead costs of C$18,000 and estimated sales of 3,000 units. There were no changes in any inventory account during the period. The company produced and sold 3,100 units at the following costs: Direct Materials (9,000 kg) C$ 81,270 Direct labor (6,000 hrs) C$ 78,000 Variable Overhead C$ 76,000 Fixed Overhead C$ 16,500 Total production costs incurred C$ 251,770 Compute the Direct Materials Price and Usage and Labor Rate and Efficiency variance.

Pomona Sprout Products Inc. produces a number of products, including handmade large fiberglass planters for outdoor displays. The firm, which began operations at the beginning of the current year, uses a standard cost system. The standard costs for one large planter are provided below: Direct Materials (3kg @ C$ 8.00 per kg) C$ 24.00 Direct labor (2hrs @ C$ 15.00 per hr) C$ 30.00 Variable Overhead Fixed Overhead Standard Cost per unit C$ 24.00 C$ 6.00 C$ 84.00 The C$6.00 fixed overhead rate is based on total budgeted fixed overhead costs of C$18,000 and estimated sales of 3,000 units. There were no changes in any inventory account during the period. The company produced and sold 3,100 units at the following costs: Direct Materials (9,000 kg) C$ 81,270 Direct labor (6,000 hrs) C$ 78,000 Variable Overhead C$ 76,000 Fixed Overhead C$ 16,500 Total production costs incurred C$ 251,770 Compute the Direct Materials Price and Usage and Labor Rate and Efficiency variance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please avoid solutions in an image format thanku 

Pomona Sprout Products Inc. produces a number of products, including handmade large fiberglass planters for outdoor displays. The firm, which began operations at the beginning of the current year, uses a standard cost system. The standard costs for one large planter are provided below: Direct Materials (3kg @ C$ 8.00 per kg) C$ 24.00 Direct labor (2hrs @ C$ 15.00 per hr) C$ 30.00 Variable Overhead C$ 24.00 Fixed Overhead C$ 6.00 Standard Cost per unit C$ 84.00 The C$6.00 fixed overhead rate is based on total budgeted fixed overhead costs of C$18,000 and estimated sales of 3,000 units. There were no changes in any inventory account during the period. The company produced and sold 3,100 units at the following costs: Direct Materials (9,000 kg) C$ 81,270 Direct labor (6,000 hrs) C$ 78,000 Variable Overhead C$ 76,000 Fixed Overhead C$ 16,500 Total production costs incurred C$ 251,770 Compute the Direct Materials Price and Usage and Labor Rate and Efficiency variance.
Transcribed Image Text:Pomona Sprout Products Inc. produces a number of products, including handmade large fiberglass planters for outdoor displays. The firm, which began operations at the beginning of the current year, uses a standard cost system. The standard costs for one large planter are provided below: Direct Materials (3kg @ C$ 8.00 per kg) C$ 24.00 Direct labor (2hrs @ C$ 15.00 per hr) C$ 30.00 Variable Overhead C$ 24.00 Fixed Overhead C$ 6.00 Standard Cost per unit C$ 84.00 The C$6.00 fixed overhead rate is based on total budgeted fixed overhead costs of C$18,000 and estimated sales of 3,000 units. There were no changes in any inventory account during the period. The company produced and sold 3,100 units at the following costs: Direct Materials (9,000 kg) C$ 81,270 Direct labor (6,000 hrs) C$ 78,000 Variable Overhead C$ 76,000 Fixed Overhead C$ 16,500 Total production costs incurred C$ 251,770 Compute the Direct Materials Price and Usage and Labor Rate and Efficiency variance.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS