Ravena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: • 3,750 units of compound were produced during the month. • There was no beginning direct materials inventory. • Direct materials purchased: 12,000 ounces for $225,000. • The ending direct materials inventory was 2,000 ounces. • Direct labor-hours worked: 5,600 hours at a cost of $67,200. • Variable manufacturing overhead costs incurred amounted to $18,200. • Variable manufacturing overhead applied to products: $18,375. The variable overhead rate variance for October is:

Ravena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: • 3,750 units of compound were produced during the month. • There was no beginning direct materials inventory. • Direct materials purchased: 12,000 ounces for $225,000. • The ending direct materials inventory was 2,000 ounces. • Direct labor-hours worked: 5,600 hours at a cost of $67,200. • Variable manufacturing overhead costs incurred amounted to $18,200. • Variable manufacturing overhead applied to products: $18,375. The variable overhead rate variance for October is:

Name: OOO$4,375 Unfavorable$1,900 Unfavorable$1,400 Favorable$3,750 Favorab
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Description: OOO$4,375 Unfavorable$1,900 Unfavorable$1,400 Favorable$3,750 Favorable Ravena Labs., Incorporated makes a single product which has the following standards:Direct materials: 2.5 ounces at $20 per ounceDirect labor: 1.4 hours at $12.50 per hourVariab

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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