Exercise 6-17255.Reliance, Inc. utilizes a standard cost system for budget and control purposes.Flexible budgets are determined and all overhead cost items are assigned on the basisof standard direct labor hours.The following standard cost per finished unit was determined on the basis of aprojected monthly normal production for 2020:Direct materials (3 pounds @ P6.00)Direct labor (0.30 hour @P40.00)Variable overhead (0.30 hour @P10)Fixed overhead ().30 hour @ P6-2/3)P18.0012.003.002.00TotalP35.00You have just received the condensed performance report for the month ofSept., 2020.VARIANCE ANALYSISStandardPrice orCapacityQuantityor time orEfficiencyP6,000 U1,200 UCostsRateVariancesDirect materials usedDirect labor costsVariable overheadFixed overheadAppliedP162,000108,00027,00018,000P14,000 F*18,200 U5,250 U1,500 U300 UP4,000** U*Includes labor joint variance.** Includes overhead capacity variance & fixed overhead efficiency variance 240REQUIRED:1. Determine the following graphically for:a. Actual cost per pound of raw materialsb. Actual number of pounds used up rounded to the nearest whole poundc. Standard number of pounds allowed the actual productiond. Actual labor rate per houre. Actual number of hours used upf. Standard number of hours allowed the actual productiong. Actual number of units produced (double-check)h. Normal production in units and hoursi. Actual fixed overheadj. Actual variable overheadNote: Start with the skeletons of the visual aids & the flexible overhead budget

a. P 5.50 b. 28,000 pounds c. 27,000 pounds d. P 46.67 e. 2,730 hours f. 2,700 hours g. 9,000 units…

Reliance, Inc. utilizes a standard o lexible budgets are determined and all ov standard direct labor hours. The following standard cost per fin pjected monthly normal production for Direct materials (3 pounds @ P6.0 Direct labor (0.30 hour @P40.00) Variable overhead (0.30 hour @F

Reliance, Inc. utilizes a standard o lexible budgets are determined and all ov standard direct labor hours. The following standard cost per fin pjected monthly normal production for Direct materials (3 pounds @ P6.0 Direct labor (0.30 hour @P40.00) Variable overhead (0.30 hour @F

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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Please answer.
Reliance, Inc, utilizes a standard cost system for budget and control purposes. Flexible budgets are determined and all overbead cost items are assigned on the basis of standard direct labor hours. The following standard cost per finished unit was determined on the basis of a projected monthly normal production for 2020: Direct materials (3 pounds @ P6.00) Direct labor (0.30 hour @P40.00) Variable overhead (0.30 hour @P10) Fixed overhead (0.30 hour @ P6-2/3) P18.00 12.00 3.00 2.00 Total P35.00 You have just received the condensed performance report for the month of Sept., 2020. VARIANCE ANALYSIS Price or Quantity or time or Standard Сарacity Costs Rate Variances Direct materials used Direct labor costs Applied P162,000 108,000 Efficiency P6,000 U 1,200 U P14,000 F *18,200 U 5,250 U 1,500 U Variable overhead 27,000 18,000 300 U Fixed overhead P4,000* U * Includes labor joint variance. ** Includes overhead capacity variance & fixed overhead efficiency variance
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