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Managerial Accounting - Problem 11-1A Costello Corporation Parts A and B

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Question;Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.Direct materials?2 pound plastic at $6.08 per pound $ 12.16Direct labor?1.50 hours at $11.00 per hour 16.50Variable manufacturing overhead 11.25Fixed manufacturing overhead 12.75Total standard cost per unit $52.66The predetermined manufacturing overhead rate is $16 per direct labor hour ($24.00 ? 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,700 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $65,250 ($7.50 per hour) and total fixed overhead costs of $73,950 ($8.50 per hour). Actual costs for October in producing 3,700 units were as follows.Direct materials (7,580 pounds) $ 48,057Direct labor (5,420 hours) 60,975Variable overhead 62,691Fixed overhead 28,339Total manufacturing costs $200,062The 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.)Required the following:Total Materials Variance, Materials Price Variance, Total Labor Variance, Labor Price Variance, Labor Quantity Variance, and then to compute the total overhead variance.

 

Paper#38527 | Written in 18-Jul-2015

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