The following information has been gathered from KLP. cormany's static budget for the most recent months. • Direct materials per unit of product 5 pounds *$1.50per pound. • Direct labour per unit of product 45 hour*$20 per hour. Variable manufacturing overhead $15 per direct labour hour The actual activity of the most recent month: 10,000 pounds direct material purchased at cost $17,000. 9,504 pounds of direct material used to produce 1728 Units of product. • 864 total direct labour hours were used and total payment was $18,144 Variable manufacturing overhead costs $13,824.
The following information has been gathered from KLP. cormany's static budget for the most recent months. • Direct materials per unit of product 5 pounds *$1.50per pound. • Direct labour per unit of product 45 hour*$20 per hour. Variable manufacturing overhead $15 per direct labour hour The actual activity of the most recent month: 10,000 pounds direct material purchased at cost $17,000. 9,504 pounds of direct material used to produce 1728 Units of product. • 864 total direct labour hours were used and total payment was $18,144 Variable manufacturing overhead costs $13,824.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Requirements:
Compute
- Materials purchase price variance
- Materials quantity variance
- 3.Direct-labor rate (price) variance
![Question B
The following information has been gathered from KLP. cORmanx's static budget for the most
recent months.
• Direct materials per unit of product 5 pounds *$1.50per pound.
• Direct labour per unit of product 45 hour*$20 per hour.
Variable manufacturing overhead $15 per direct labour hour
The actual activity of the most recent month:
10,000 pounds direct material purchased at cost $17,000.
9,504 pounds of direct material used to produce 1728 Units of product.
864 total direct labour hours were used and total payment was $18,144
Variable manufacturing overhead costs $13,824.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7d92622-64c1-4146-aabc-9ef45236de54%2F6c9ab978-ce0b-459b-9263-5c46a35b9ddb%2F7tteiy5_processed.png&w=3840&q=75)
Transcribed Image Text:Question B
The following information has been gathered from KLP. cORmanx's static budget for the most
recent months.
• Direct materials per unit of product 5 pounds *$1.50per pound.
• Direct labour per unit of product 45 hour*$20 per hour.
Variable manufacturing overhead $15 per direct labour hour
The actual activity of the most recent month:
10,000 pounds direct material purchased at cost $17,000.
9,504 pounds of direct material used to produce 1728 Units of product.
864 total direct labour hours were used and total payment was $18,144
Variable manufacturing overhead costs $13,824.
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