Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-2.5 hours at $11.80 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (4,030 pounds) Direct labor (9,600 hours) Variable overhead Fixed overhead Total manufacturing costs The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($35.00 ÷ 2.5). It was computed from a master manufacturing overhead budget based on normal production of 13,250 direct labor hours (5,300 units) for the month. The master budget showed total variable costs of $92,750 ($7.00 per hour) and total fixed overhead costs of $92,750 ($7.00 per hour). Actual costs for October in producing 3,900 units were as follows. $28,613 116,160 103,738 $7.00 29.50 17.50 17.50 34,862 $283,373 $71.50 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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(a)
Compute all of the materials and labor variances.
Total materials variance
Materials price variance
Materials quantity variance
Total labor variance
Labor price variance
Labor quantity variance
(b)
Total overhead variance $
LA
tA
$
LA
$
LA
$
LA
$
LA
Compute the total overhead variance.
CA
Transcribed Image Text:(a) Compute all of the materials and labor variances. Total materials variance Materials price variance Materials quantity variance Total labor variance Labor price variance Labor quantity variance (b) Total overhead variance $ LA tA $ LA $ LA $ LA $ LA Compute the total overhead variance. CA
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
Direct materials-1 pound plastic at $7.00 per pound
Direct labor-2.5 hours at $11.80 per hour
Variable manufacturing overhead
Fixed manufacturing overhead
Total standard cost per unit
Direct materials (4,030 pounds)
Direct labor (9,600 hours)
Variable overhead
Fixed overhead
Total manufacturing costs
$28,613
116,160
103,738
34,862
$7.00
$283,373
29.50
17.50
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($35.00 ÷ 2.5). It was computed from a master
manufacturing overhead budget based on normal production of 13,250 direct labor hours (5,300 units) for the month. The master
budget showed total variable costs of $92,750 ($7.00 per hour) and total fixed overhead costs of $92,750 ($7.00 per hour). Actual
costs for October in producing 3,900 units were as follows.
17.50
$71.50
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.
Transcribed Image Text:Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-2.5 hours at $11.80 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (4,030 pounds) Direct labor (9,600 hours) Variable overhead Fixed overhead Total manufacturing costs $28,613 116,160 103,738 34,862 $7.00 $283,373 29.50 17.50 The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($35.00 ÷ 2.5). It was computed from a master manufacturing overhead budget based on normal production of 13,250 direct labor hours (5,300 units) for the month. The master budget showed total variable costs of $92,750 ($7.00 per hour) and total fixed overhead costs of $92,750 ($7.00 per hour). Actual costs for October in producing 3,900 units were as follows. 17.50 $71.50 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.
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