REQUIRED: 1. Determine the following graphically for: a. Actual cost per pound of raw materials b. Actual number of pounds used up rounded to the nearest whole pound c. Standard number of pounds allowed the actual production d. Actual labor rate per hour
REQUIRED: 1. Determine the following graphically for: a. Actual cost per pound of raw materials b. Actual number of pounds used up rounded to the nearest whole pound c. Standard number of pounds allowed the actual production d. Actual labor rate per hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pa help po. Salamat.
Transcribed Image Text:240
REQUIRED:
1. Determine the following graphically for:
a. Actual cost per pound of raw materials
b. Actual number of pounds used up rounded to the nearest whole pound
c. Standard number of pounds allowed the actual production
d. Actual labor rate per hour
e. Actual number of hours used up
f. Standard number of hours allowed the actual production
g. Actual number of units produced (double-check)
h. Normal production in units and hours
i. Actual fixed overhead
j. Actual variable overhead
Transcribed Image Text:Exercise 6-17
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 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 ().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
Quantity
or time or
Standard
Price or
Сараcity
Costs
Rate
Applied
P162,000
108,000
27,000
18,000
Efficiency
P6,000 U
1,200 U
300 U
Variances
P14,000 F
*18,200 U
5,250 U
1,500 U
Direct materials used
Direct labor costs
Variable overhead
Fixed overhead
P4,000** U
*Includes labor joint variance.
** Includes overhead capacity variance & fixed overhead efficiency variance
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