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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 (4) Compute all of the materials and labor variances Total laborvariance Labor price varian N Compute the total overt Tokal overhead varance $ lance A

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 (4) Compute all of the materials and labor variances Total laborvariance Labor price varian N Compute the total overt Tokal overhead varance $ lance A

FINANCIAL ACCOUNTING
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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Crane Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $8.00 per pound Direct labor-2.00 hours at $11.60 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (4,140 pounds) Direct labor (7,850 hours) Variable overhead Fixed overhead Total manufacturing costs $33,948 92.630 67.198 (a) The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,200 direct labor hours (5,600 units) for the month. The master budget showed total variable costs of $72.800 ($6.50 per hour) and total fixed overhead costs of $61,600 ($5.50 per hour). Actual costs for October in producing 4,000 units were as follows. 30,602 $224,378 $8.00 23.20 13.00 Compute all of the materials and labor variances 11.00 $55.20 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.
Transcribed Image Text:Crane Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $8.00 per pound Direct labor-2.00 hours at $11.60 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (4,140 pounds) Direct labor (7,850 hours) Variable overhead Fixed overhead Total manufacturing costs $33,948 92.630 67.198 (a) The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,200 direct labor hours (5,600 units) for the month. The master budget showed total variable costs of $72.800 ($6.50 per hour) and total fixed overhead costs of $61,600 ($5.50 per hour). Actual costs for October in producing 4,000 units were as follows. 30,602 $224,378 $8.00 23.20 13.00 Compute all of the materials and labor variances 11.00 $55.20 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.
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 materials and labor variances Total materials variance Materials price variance Materials quantity variance Total labor variance Labor price variance Labor quantity variance 04 Total overhead varlance elextbook and Media $ Se $ 5 $ Compute the total overhead varlance S $ Neither Tavorable no Fa Ufavorable Attempty 0 of 3 used
Transcribed Image Text: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 materials and labor variances Total materials variance Materials price variance Materials quantity variance Total labor variance Labor price variance Labor quantity variance 04 Total overhead varlance elextbook and Media $ Se $ 5 $ Compute the total overhead varlance S $ Neither Tavorable no Fa Ufavorable Attempty 0 of 3 used
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