Standard cost card- Mx cabinet Direct material: Lumber 50 board feet at P4 Direct Labor: 8 hours at P10 Overhead costs: Variable -8 hours at P5 Fixed - 8 hours at P3 P200 80 40 Total standard unit cost 24 P344 During June 2014, 500 of these cabinets were produced. The cost of operations during the month shown below. There are no work-in process at the beginning and end of the month. Direct materials purchased: 30,000 board feet at P4.10 Direct materials used: 24,000 board feet Direct labor: 4,200 hours at P9.50 Overhead costs: Variable costs Fixed costs P123,000 39,900 22,000 11,000 The budgeted overhead for the cabinet department used based on normal monthly activity of 4,500 hours is P36,000 of which 22,500 is variable and P13,500 is fixed overhead. Required: a. Compute for the following variances: 1. Direct material price variance 2. Direct material usage variance 3. Direct labor rate variance 4. Direct labor efficiency variance b. Compute for the factory overhead variance using 3 way analysis.

Standard cost card- Mx cabinet Direct material: Lumber 50 board feet at P4 Direct Labor: 8 hours at P10 Overhead costs: Variable -8 hours at P5 Fixed - 8 hours at P3 P200 80 40 Total standard unit cost 24 P344 During June 2014, 500 of these cabinets were produced. The cost of operations during the month shown below. There are no work-in process at the beginning and end of the month. Direct materials purchased: 30,000 board feet at P4.10 Direct materials used: 24,000 board feet Direct labor: 4,200 hours at P9.50 Overhead costs: Variable costs Fixed costs P123,000 39,900 22,000 11,000 The budgeted overhead for the cabinet department used based on normal monthly activity of 4,500 hours is P36,000 of which 22,500 is variable and P13,500 is fixed overhead. Required: a. Compute for the following variances: 1. Direct material price variance 2. Direct material usage variance 3. Direct labor rate variance 4. Direct labor efficiency variance b. Compute for the factory overhead variance using 3 way analysis.

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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Parkway Company incurred $134,000 in material costs during July. Additionally, the 12,800 units in the Work-in-Process Inventory on July 1 had materials assigned to them of $40,000, even though they were only 5% complete as to materials. No additional units were started during July, and there were no unfinished units on hand on July 31. What is the material cost per equivalent unit for July, assuming Parkway uses weighted-average process costing? Multiple Choice $10.47 $11.99 $13.59 $15.47
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Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 62,000 direct-labor hours as follows: Standard costs per unit (one box of paper): Variable overhead (2 direct-labor hours @ $4.5 per hour) $ 9 Fixed overhead (2 direct-labor hours @ $10 per hour) 20 Total $ 29 During April, 31,000 units were scheduled for production; however, only 26,000 units were actually produced. The following data relate to April. Actual direct-labor cost incurred was $848,000 for 53,000 actual hours of work. Actual overhead incurred totaled $843,800, of which $243,800 was variable and $600,000 was fixed. Required:Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8 in the chapter, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.1. Variable-overhead spending variance.2. Variable-overhead efficiency variance.3.…
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Subject: Acounting