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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Topic: Standard Costing and Variance Analysis Question: Create a concept map which discusses on the different types of variances and their formula.
pls answer the questions
iv) Labour rate variance v) Labour efficiency variance vi) Overhead variances (both) d.Comment on your calculations produced in c above.
Explain how the two-, three-, and four-variance overhead analyses are related.
Which of the following is a correct equation to calculate the fixed overhead production-volume variance? a. budgeted fixed overhead costs − fixed overhead costs allocated for actual output b. static budget amount − flexible budget amount c. actual costs incurred − fixed overhead costs allocated for actual output d. flexible budget amount − actual costs incurred
Which one is the correct answer?
Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.
The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons
Subject: acounting
Which of the following is the difference between the actual cost of materials and thematerials cost allowed for the actual level of activity? a. Total materials variance b. Total materials regression c. Total materials cost d. Total materials margin e. None of these
Answer only d, e, and f
b. Calculate the profit variance c. Calculate the total revenue variance. d) Calculate the revenue volume variance. e) Calculate the revenue price variance. f) Calculate the total cost variance.