PROBLEM #1 Xavier Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce.. Direct labor: 1.8 hours at $10 per hour.... Variable manufacturing overhead: 1.8 hours at $5 per hour.......9 Total standard variable cost per unit.... .$3 18 ..$30 During June, 2,000 units were produced. The costs associated with June's operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce... . . . . $10,800 Material used in production: 14,000 ounces.. Direct labor: 4,000 hours at $9.75 per hour... Variable manufacturing overhead costs incurred. $39,000 $20,800 Required: Compute the direct materials, direct labor, and variable manufacturing overhead variances.
PROBLEM #1 Xavier Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce.. Direct labor: 1.8 hours at $10 per hour.... Variable manufacturing overhead: 1.8 hours at $5 per hour.......9 Total standard variable cost per unit.... .$3 18 ..$30 During June, 2,000 units were produced. The costs associated with June's operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce... . . . . $10,800 Material used in production: 14,000 ounces.. Direct labor: 4,000 hours at $9.75 per hour... Variable manufacturing overhead costs incurred. $39,000 $20,800 Required: Compute the direct materials, direct labor, and variable manufacturing overhead variances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![PROBLEM #1
Xavier Company produces a single product. Variable manufacturing overhead is applied to products on
the basis of direct labor-hours. The standard costs for one unit of product are as follows:
Direct material: 6 ounces at $0.50 per ounce....
Direct labor: 1.8 hours at $10 per hour...
18
Variable manufacturing overhead: 1.8 hours at $5 per hour....... 9
Total standard variable cost per unit ....
$30
$3
During June, 2,000 units were produced. The costs associated with June's operations were as
follows:
Material purchased: 18,000 ounces at $0.60 per ounce..
Material used in production: 14,000 ounces.
Direct labor: 4,000 hours at $9.75 per hour …..
Variable manufacturing overhead costs incurred .
..$10,800
$39,000
$20,800
Required:
Compute the direct materials, direct labor, and variable manufacturing overhead variances.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50bd89de-ee3c-4cda-bfc9-9c9638677ebd%2Fcf74d405-4e91-4ede-b991-6c8f3decb5f3%2Fufhjn0i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PROBLEM #1
Xavier Company produces a single product. Variable manufacturing overhead is applied to products on
the basis of direct labor-hours. The standard costs for one unit of product are as follows:
Direct material: 6 ounces at $0.50 per ounce....
Direct labor: 1.8 hours at $10 per hour...
18
Variable manufacturing overhead: 1.8 hours at $5 per hour....... 9
Total standard variable cost per unit ....
$30
$3
During June, 2,000 units were produced. The costs associated with June's operations were as
follows:
Material purchased: 18,000 ounces at $0.60 per ounce..
Material used in production: 14,000 ounces.
Direct labor: 4,000 hours at $9.75 per hour …..
Variable manufacturing overhead costs incurred .
..$10,800
$39,000
$20,800
Required:
Compute the direct materials, direct labor, and variable manufacturing overhead variances.
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