Chapter 16, Problem 10BE

Calculate the overhead expenses as a percentage of the net sales.

Merchandise with an invoice price of $8,500 was purchased subject to terms of 3/15, n/45, FOB destination. Transportation costs paid by the seller totaled $420. Assuming the invoice was paid within the discount period, what is the purchaser's net cost of the merchandise?

The actual cost of direct labor per hour is $29.75 and the standard cost of direct labor per hour is $31.50. The direct labor hours allowed per finished unit is 1.25 hours. During the current period, 5,800 units of finished goods were produced using 7,500 direct labor hours. How much is the direct labor rate variance?

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