Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $6.00 per pound $ 6.00 Direct labor—2.0 hours at $12.20 per hour 24.40 Variable manufacturing overhead 15.00 Fixed manufacturing overhead 13.00 Total standard cost per unit $58.40 The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($28.00 ÷ 2.0). It was computed from a master manufacturing overhead budget based on normal production of 10,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $75,000 ($7.50 per hour) and total fixed overhead costs of $65,000 ($6.50 per hour). Actual costs for October in producing 3,400 units were as follows. Direct materials (3,600 pounds) $ 22,320 Direct labor (6,650 hours) 83,790 Variable overhead 66,638 Fixed overhead 30,462 Total manufacturing costs $203,210 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 $ favorable or unfavorable Materials price variance $ favorable or unfavorable Materials quantity variance $ favorable or unfavorable Total labor variance $ favorable or unfavorable Labor price variance $ favorable or unfavorable Labor quantity variance $ favorable or unfavorable (b)Compute the total overhead variance. Total overhead variance $ favorable or unfavorable

Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $6.00 per pound $ 6.00 Direct labor—2.0 hours at $12.20 per hour 24.40 Variable manufacturing overhead 15.00 Fixed manufacturing overhead 13.00 Total standard cost per unit $58.40 The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($28.00 ÷ 2.0). It was computed from a master manufacturing overhead budget based on normal production of 10,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $75,000 ($7.50 per hour) and total fixed overhead costs of $65,000 ($6.50 per hour). Actual costs for October in producing 3,400 units were as follows. Direct materials (3,600 pounds) $ 22,320 Direct labor (6,650 hours) 83,790 Variable overhead 66,638 Fixed overhead 30,462 Total manufacturing costs $203,210 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 $ favorable or unfavorable Materials price variance $ favorable or unfavorable Materials quantity variance $ favorable or unfavorable Total labor variance $ favorable or unfavorable Labor price variance $ favorable or unfavorable Labor quantity variance $ favorable or unfavorable (b)Compute the total overhead variance. Total overhead variance $ favorable or unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials—1 pound plastic at $6.00 per pound		$ 6.00
Direct labor—2.0 hours at $12.20 per hour		24.40
Variable manufacturing overhead		15.00
Fixed manufacturing overhead		13.00
Total standard cost per unit		$58.40

The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($28.00 ÷ 2.0). It was computed from a master manufacturing overhead budget based on normal production of 10,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $75,000 ($7.50 per hour) and total fixed overhead costs of $65,000 ($6.50 per hour). Actual costs for October in producing 3,400 units were as follows.

Direct materials (3,600 pounds)		$ 22,320
Direct labor (6,650 hours)		83,790
Variable overhead		66,638
Fixed overhead		30,462
Total manufacturing costs		$203,210

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	$	favorable or unfavorable
Materials price variance	$	favorable or unfavorable
Materials quantity variance	$	favorable or unfavorable
Total labor variance	$	favorable or unfavorable
Labor price variance	$	favorable or unfavorable
Labor quantity variance	$	favorable or unfavorable

(b)Compute the total overhead variance.

Total overhead variance

favorable or unfavorable

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.