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ACC - Costello Corporation manufactures a single product

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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 $7.97 per pound$ 15.94Direct labor?2.50 hours at $11.00 per hour27.50Variable manufacturing overhead15.00Fixed manufacturing overhead25.00Total standard cost per unit$83.44The predetermined manufacturing overhead rate is $16 per direct labor hour ($40.00 ? 2.50). It was computed from a master manufacturing overhead budget based on normal production of 13,750 direct labor hours (5,500 units) for the month. The master budget showed total variable costs of $82,500 ($6.00 per hour) and total fixed overhead costs of $137,500 ($10.00 per hour). Actual costs for October in producing 4,000 units were as follows.Direct materials (8,140 pounds)$ 67,236Direct labor (9,850 hours)110,517Variable overhead121,918Fixed overhead39,992 Total manufacturing costs$339,663The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)Total materials variance$Materials price variance$Materials quantity variance$Total labor variance$Labor price variance$Labor quantity variance$(b) Compute the total overhead variance.Total overhead variance$

 

Paper#39521 | Written in 18-Jul-2015

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