Xavier Company produces a single product. Variable manufacturing overhead is applied to prod- ucts on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce Direct labor: 0.6 hours at $30.00 per hour.... Variable manufacturing overhead: 0.6 hours at $10.00 per hour.. $ 3.00 18.00 6.00 Total standard variable cost per unit.. $27.00 During June, 2,000 units were produced. The costs associated with June's operations were as Follows: Material purchased: 18,000 ounces at $0.60 per ounce. Material used in production: 14,000 ounces. Direct labor: 1,100 hours at $30.50 per hour Variable manufacturing overhead costs incurred $10,800 $33,550 $12,980 Required: Compute the direct materials, direct labor, and variable manufacturing overhead variances.

Xavier Company produces a single product. Variable manufacturing overhead is applied to prod- ucts on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce Direct labor: 0.6 hours at $30.00 per hour.... Variable manufacturing overhead: 0.6 hours at $10.00 per hour.. $ 3.00 18.00 6.00 Total standard variable cost per unit.. $27.00 During June, 2,000 units were produced. The costs associated with June's operations were as Follows: Material purchased: 18,000 ounces at $0.60 per ounce. Material used in production: 14,000 ounces. Direct labor: 1,100 hours at $30.50 per hour Variable manufacturing overhead costs incurred $10,800 $33,550 $12,980 Required: Compute the direct materials, direct labor, and variable manufacturing overhead variances.

Name: neview ProblemXavier Company produces a single product. Variable manu
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Description: neview ProblemXavier Company produces a single product. Variable manufacturing overhead is applied to prod-ucts on the basis of direct labor-hours. The standard costs for one unit of product are as follows:Direct material: 6 ounces at $0.50 per ounc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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neview Problem
Xavier Company produces a single product. Variable manufacturing overhead is applied to prod-
ucts on the basis of direct labor-hours. The standard costs for one unit of product are as follows:
Direct material: 6 ounces at $0.50 per ounce
Direct labor: 0.6 hours at $30.00 per hour..
Variable manufacturing overhead: 0.6 hours at $10.00 per hour..
$ 3.00
18.00
6.00
Total standard variable cost per unit..
$27.00
During June, 2,000 units were produced. The costs associated with June's operations were as
follows:
Material purchased: 18,000 ounces at $0.60 per ounce.
Material used in production: 14,000 ounces.
Direct labor: 1,100 hours at $30.50 per hour
Variable manufacturing overhead costs incurred
$10,800
$33,550
$12,980
Required:
Compute the direct materials, direct labor, and variable manufacturing overhead variances.

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