Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. Themaster budget showed total variable costs of $53,625 ($6.50 per hour) and total fixed overhead costs of $61,875 ($7.50 per hour). Actual costs for October in producing 4,200 units were as follows.
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
(a)
Compute all of the materials and labor variances.
(b)
Compute the total overhead variance.
| Direct materials—1 pound plastic at $8.00 per pound | $ 8.00 | |
| Direct labor—1.5 hours at $11.90 per hour | 17.85 | |
| Variable manufacturing |
9.75 | |
| Fixed manufacturing overhead | 11.25 | |
| Total standard cost per unit | $46.85 |
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. The
| Direct materials (4,380 pounds) | $ 35,478 | |
| Direct labor (6,190 hours) | 75,518 | |
| Variable overhead | 67,030 | |
| Fixed overhead | 23,170 | |
| Total |
$201,196 |
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
(a)
Compute all of the materials and labor variances.
| Total materials variance | $enter a dollar amount | select an option | ||
|---|---|---|---|---|
| Materials price variance | $enter a dollar amount | select an option | ||
| Materials quantity variance | $enter a dollar amount | select an option | ||
| Total labor variance | $enter a dollar amount | select an option | ||
| Labor price variance | $enter a dollar amount | select an option | ||
| Labor quantity variance | $enter a dollar amount | select an option |
(b)
Compute the total overhead variance.
| Total overhead variance | $enter the total overhead variance in dollars | select an option |
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. The master budget showed total variable costs of $53,625 ($6.50 per hour) and total fixed overhead costs of $61,875 ($7.50 per hour). Actual costs for October in producing 4,200 units were as follows.
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
(a)
Compute all of the materials and labor variances.
(b)
Compute the total overhead variance.
| Direct materials—1 pound plastic at $8.00 per pound | $ 8.00 | |
| Direct labor—1.5 hours at $11.90 per hour | 17.85 | |
| Variable manufacturing overhead | 9.75 | |
| Fixed manufacturing overhead | 11.25 | |
| Total standard cost per unit | $46.85 |
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. The master budget showed total variable costs of $53,625 ($6.50 per hour) and total fixed overhead costs of $61,875 ($7.50 per hour). Actual costs for October in producing 4,200 units were as follows.
| Direct materials (4,380 pounds) | $ 35,478 | |
| Direct labor (6,190 hours) | 75,518 | |
| Variable overhead | 67,030 | |
| Fixed overhead | 23,170 | |
| Total manufacturing costs | $201,196 |
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
(a)
Compute all of the materials and labor variances.
| Total materials variance | $enter a dollar amount | select an option | ||
|---|---|---|---|---|
| Materials price variance | $enter a dollar amount | select an option | ||
| Materials quantity variance | $enter a dollar amount | select an option | ||
| Total labor variance | $enter a dollar amount | select an option | ||
| Labor price variance | $enter a dollar amount | select an option | ||
| Labor quantity variance | $enter a dollar amount | select an option |
(b)
Compute the total overhead variance.
| Total overhead variance | $enter the total overhead variance in dollars | select an option |
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