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Clean sweep company_Standard costing_Variance analysis




Question;Clean sweep company produces;all-vinyl mats. Each doormat calls for.5 meter of vinyl material. The material;should cost $3 per meter. Standard direct labor hours and labor cost per;doormat are.3 hour and $6 (.3 X$20 per hour).;Currently the standard;variable overhead rate is $1.5 per direct labor hour, and its standard fixed;overhead rate is.8 per direct labor hour.;In;August, the division manufactured and sold 50,000 doormats. Duing the month, it;used 25,200 meters of vinyl material, the total cost of the material was;$73,080.;The total overhead costs for;August were $28,200, of which $18,200 was variable.;The total number of direct;labor hours worked was 10,800 and the factory payroll for direct labor for the;month was $214,920. Budgeted fixed overhead for August was $9,280. Normal;monthly capacity for the year was set at 58,000 doormats.


Paper#37284 | Written in 18-Jul-2015

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