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-0.5 hours at $11.90 per hour 5.95 Variable manufacturing overhead 3.00 Fixed manufacturing overhead 5.00 Tatal standard cost per unk $19.95 The predetermined manufacturing overhead rate is $16.00 per direct labor hour ($8.00 + 0.5). It was computed from a master manufacturing overhead budget based on normal production of 2,600 direct labor hours (5,200 units) for the month. The master budget showed total variable costs of $15,600 ($6.00 per hour) and total fixed Direct materials (3,190 pounds) $ 19,459 Direct labor (1,390 hours) 17,097 Variable overhead 18,238 Fixed overhead 7,562 Total manufacturing costs $62,356 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 meterials and lebor variances. Tatal materials variance Materials price variance Materials quantity variance
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-0.5 hours at $11.90 per hour 5.95 Variable manufacturing overhead 3.00 Fixed manufacturing overhead 5.00 Tatal standard cost per unk $19.95 The predetermined manufacturing overhead rate is $16.00 per direct labor hour ($8.00 + 0.5). It was computed from a master manufacturing overhead budget based on normal production of 2,600 direct labor hours (5,200 units) for the month. The master budget showed total variable costs of $15,600 ($6.00 per hour) and total fixed Direct materials (3,190 pounds) $ 19,459 Direct labor (1,390 hours) 17,097 Variable overhead 18,238 Fixed overhead 7,562 Total manufacturing costs $62,356 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 meterials and lebor variances. Tatal materials variance Materials price variance Materials quantity variance
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-0.5 hours at $11.90 per hour 5.95 Variable manufacturing overhead 3.00 Fixed manufacturing overhead 5.00 Tatal standard cost per unk $19.95 The predetermined manufacturing overhead rate is $16.00 per direct labor hour ($8.00 + 0.5). It was computed from a master manufacturing overhead budget based on normal production of 2,600 direct labor hours (5,200 units) for the month. The master budget showed total variable costs of $15,600 ($6.00 per hour) and total fixed Direct materials (3,190 pounds) $ 19,459 Direct labor (1,390 hours) 17,097 Variable overhead 18,238 Fixed overhead 7,562 Total manufacturing costs $62,356 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 meterials and lebor variances. Tatal materials variance Materials price variance Materials quantity variance
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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