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ACC - Costello Corporation manufactures a single product




Question;Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.Direct materials?1 pound plastic at $7.29 per pound $ 7.29Direct labor?0.50 hours at $12.00 per hour 6.00Variable manufacturing overhead 3.50Fixed manufacturing overhead 3.50Total standard cost per unit $20.29The predetermined manufacturing overhead rate is $14 per direct labor hour ($7.00 ? 0.50). It was computed from a master manufacturing overhead budget based on normal production of 2,550 direct labor hours (5,100 units) for the month. The master budget showed total variable costs of $17,850 ($7.00 per hour) and total fixed overhead costs of $17,850 ($7.00 per hour). Actual costs for October in producing 3,400 units were as follows.Direct materials (3,570 pounds) $ 27,096Direct labor (1,540 hours) 18,896Variable overhead 18,324Fixed overhead 7,286Total manufacturing costs $71,602The 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 $Neither favorable nor unfavorableFavorableUnfavorableMaterials price variance $UnfavorableFavorableNeither favorable nor unfavorableMaterials quantity variance $Neither favorable nor unfavorableUnfavorableFavorableTotal labor variance $FavorableUnfavorableNeither favorable nor unfavorableLabor price variance $Neither favorable nor unfavorableUnfavorableFavorableLabor quantity variance $Neither favorable nor unfavorableUnfavorableFavorable(b) Compute the total overhead variance.Total overhead variance $


Paper#41861 | Written in 18-Jul-2015

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