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Compute the total overhead variance.




Kimm Company has gathered the following information about its product.;Direct materials: Each unit of product contains 4.30 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $4 per pound, but Kimm always takes the 4.27% cash discount all of its suppliers offer. Freight costs average $0.41 per pound.;Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.24 hours per unit. The average hourly pay rate of Kimm?s employees is $11.40. Payroll taxes and fringe benefits are an additional $3.30 per hour.;Manufacturing overhead. Overhead is applied at a rate of $6.10 per direct labor hour.;Compute Kimm?s total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.);Total standard cost per unit $;Exercise 11-6;Lewis Company?s standard labor cost of producing one unit of Product DD is 3.90 hours at the rate of $12.00 per hour. During August, 40,300 hours of labor are incurred at a cost of $12.14 per hour to produce 10,200 units of Product DD.;(a) Compute the total labor variance.;Total labor variance $______________ (Favorable, Unfavorable, or neither);(b) Compute the labor price and quantity variances.;Labor price variance $______________ (Favorable, Unfavorable, or neither);Labor quantity variance $______________ (Favorable, Unfavorable, or neither);(c) Compute the labor price and quantity variances, assuming the standard is 4.25 hours of direct labor at $12.34 per hour.;Labor price variance $______________ (Favorable, Unfavorable, or neither);Labor quantity variance $______________ (Favorable, Unfavorable, or neither);Problem 11-1A;Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.;Direct materials?3 pound plastic at $6.81 per pound $ 20.43;Direct labor?1.00 hours at $12.00 per hour 12.00;Variable manufacturing overhead 5.50;Fixed manufacturing overhead 10.50;Total standard cost per unit $48.43;The predetermined manufacturing overhead rate is $16 per direct labor hour ($16.00 ? 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,900 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $32,450 ($5.50 per hour) and total fixed overhead costs of $61,950 ($10.50 per hour). Actual costs for October in producing 3,200 units were as follows.;Direct materials (9,700 pounds) $ 68,870;Direct labor (3,000 hours) 37,140;Variable overhead 37,681;Fixed overhead 15,459;Total manufacturing costs $159,150;The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.;(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.);Total materials variance $______________ (Favorable, Unfavorable, or neither);Materials price variance $______________ (Favorable, Unfavorable, or neither);Materials quantity variance $______________ (Favorable, Unfavorable, or neither);Total labor variance $______________ (Favorable, Unfavorable, or neither);Labor price variance $______________ (Favorable, Unfavorable, or neither);Labor quantity variance $______________ (Favorable, Unfavorable, or neither);(b) Compute the total overhead variance.;Total overhead variance $______________ (Favorable, Unfavorable, or neither)


Paper#24069 | Written in 18-Jul-2015

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