Water Control, Inc. manufactures water pumps and uses a standard cost system. The standard factory overhead costs per water pump are based on direct labor hours and are shown below. Variable overhead (4 hours at $8/hour) Fixed overhead (4 hours at $5/hour) Total overhead cost per unit $32 20 $52 *Based on a capacity of 100,000 direct labor hours per month. The following additional information is available for the month of November. • 22,000 pumps were produced although 25,000 had been scheduled for production. • 94,000 direct labor hours were worked at a total cost of $940,000. • The standard direct labor rate is $9 per hour. The standard direct labor time per unit is four hours. Variable overhead costs were $740,000. • Fixed overhead costs were $540,000.

Water Control, Inc. manufactures water pumps and uses a standard cost system. The standard factory overhead costs per water pump are based on direct labor hours and are shown below. Variable overhead (4 hours at $8/hour) Fixed overhead (4 hours at $5/hour) Total overhead cost per unit $32 20 $52 *Based on a capacity of 100,000 direct labor hours per month. The following additional information is available for the month of November. • 22,000 pumps were produced although 25,000 had been scheduled for production. • 94,000 direct labor hours were worked at a total cost of $940,000. • The standard direct labor rate is $9 per hour. The standard direct labor time per unit is four hours. Variable overhead costs were $740,000. • Fixed overhead costs were $540,000.

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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