Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The followingstandards have been established for the direct manufacturing costs per unit:Direct materials (2 kg at $7.50 per kilogram)$15.00 per unitDirect labour (3 hours at $12 per hour)$36.00 per unitBudgeted overhead for the month of April (based on expected activity of 11,160 direct labour hours) is as follows:Overhead is applied based on labour hours. The average activity per month is 12,090 direct labour hours. The company calculatesoverhead rates based on average activity. Results for the month of April are as follows:Variable overhead $36,270Fixed overhead24.180Units produced3,906 Calculate the variable overhead spending, quantity, and budget variances. (Round answers to 2 decimal places, e.g. 15.20.)Total overhead$60,450Direct materials used (8,060 kg)Direct labour (11,780 hours)$55,614Variable spending variance$144,305Variable overhead35,340Variable efficiency variance$Fixed overhead24,800Total variable budget variance$Total costs$260,059There was no beginning or ending work in process inventory.

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Description: Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The followingstandards have been established for the direct manufacturing costs per unit:Direct materials (2 kg at $7.50 per kilogram)$15.00 p

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Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Direct materials (2 kg at $7.50 per kilogram) $15.00 per unit Direct labour (3 hours at $12 per hour) $36.00 per unit Budgeted overhead for the month of April (based on expected activity of 11.160 direct labour hours) is as follows: Overhead is applied based on labour hours. The average activity per month is 12,090 direct labour hours. The company calculates Variable overhead $36,270 overhead rates based on average activity. Results for the month of April are as follows: Fixed overhead 24.180 Units produced Total overhead $60,450 Direct materials used (8,060 kg) Direct labour (11,780 hours) 3,906 Calculate the variable overhead spending, quantity, and budget variances. (Round answers to 2 decimal places, e.g. 15.20.) $55,614 Variable spending variance $ 144,305 Variable overhead 35,340 Variable efficiency variance $ Fixed overhead 24,800 Total variable budget variance $ Total costs $260,059 There was no beginning or ending work in process inventory.

Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Direct materials (2 kg at $7.50 per kilogram) $15.00 per unit Direct labour (3 hours at $12 per hour) $36.00 per unit Budgeted overhead for the month of April (based on expected activity of 11.160 direct labour hours) is as follows: Overhead is applied based on labour hours. The average activity per month is 12,090 direct labour hours. The company calculates Variable overhead $36,270 overhead rates based on average activity. Results for the month of April are as follows: Fixed overhead 24.180 Units produced Total overhead $60,450 Direct materials used (8,060 kg) Direct labour (11,780 hours) 3,906 Calculate the variable overhead spending, quantity, and budget variances. (Round answers to 2 decimal places, e.g. 15.20.) $55,614 Variable spending variance $ 144,305 Variable overhead 35,340 Variable efficiency variance $ Fixed overhead 24,800 Total variable budget variance $ Total costs $260,059 There was no beginning or ending work in process inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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