1.a
To compute: Total pounds of direct materials purchased.
Given information:
August 2014,
Direct material price variance is $179,300.
Direct material price variance per pound is $1.10.
b.
To compute: Total number of pounds of excess direct materials used.
Given information:
August 2014,
Units produced are 20,000 units.
Budgeted quantity of materials input for each output unit is 6 pounds.
Efficiency variance is $75,900.
Budgeted price of input is $11.50.
c.
To compute: Variable manufacturing overhead spending variance.
Given information:
August 2014,
Variable overhead efficiency variance is $18,100.
Variable overhead flexible
d.
To compute: Total number of actual direct manufacturing labor-hours used.
Given information:
August 2014,
Direct
Budgeted direct labor cost at 50,000 budgeted direct manufacturing labor-hour level for August is $1,250,000.
e.
To compute: Total number of standard direct manufacturing labor-hours allowed for the units produced.
Given information:
August 2014,
Total number of actual labor hours used as computed is 21,000 hours
Efficiency variance is $40,000.
Budgeted price of input is $25.
f.
To compute: Production-volume variance.
Given information:
August 2014,
Budgeted fixed overheads are $1,000,000.
Budgeted fixed overhead rate is
Labor hours allocated for actual output is 19,400 hours.
2.
G’s control of variable manufacturing overhead items differs from its control of fixed manufacturing overhead items.
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Chapter 8 Solutions
Cost Accounting, Student Value Edition (15th Edition)
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