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Helix Company_Standard Cosy_Variances

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Question;Helix Company produces;several products in its factory, including a karate robe. The company uses;a standard cost system to assist in the control of costs. According to the;standards that have been set for the robes, the factory should work 780 direct labor-hours;each month and produce 1,950 robes. The standard costs associated with;this level of production are as follows;Total Per Unit of;Product;Direct;materials.................. $35,490 $18.20;Direct;labor...................... $7,020 3.60;Variable;manufacturing overhead (based on;direct;labor-hours).................$2,340 1.20;$23.00;During April, the factory;worked only 760 direct labor-hours and produced 2,000 robes. The following actual costs were;recorded during the month;Total Per Unit of;Product;Direct;materials (6,000 yards).......$36,000 $18.00;Direct;labor...................... $7,600 3.80;Variable;manufacturing overhead.... $3,800 1.90;$23.70;=====;At standard, each robe;should require 2.8 yards of material. All of the materials purchased during;the month were used in production.;Required;Compute;the following variances for April;1. The;materials price and quantity variances.;2. The;labor rate and efficiency variances.;3. The;variable manufacturing overhead rate and efficiency variances

 

Paper#38277 | Written in 18-Jul-2015

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