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.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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.
Transcribed Image Text: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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