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Dinkel Manufacturing Corporation accumulates the f...




Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2010. Costs and Production Data Actual Standard Raw materials unit cost $3.15 $2.80 Raw materials units used 10,650 10,030 Direct labor payroll $171,598 $168,560 Direct labor hours worked 14,420 15,050 Manufacturing overhead incurred $184,900 Manufacturing overhead applied $265,482 Machine hours expected to be used at normal capacity 42,500 Budgeted fixed overhead for June $51,000 Variable overhead rate per hour $4.20 Fixed overhead rate per hour $1.68 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $454,200. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used. Compute the overhead controllable variance and the overhead volume variance. 1)Overhead controllable variance 2)Overhead volume variance


Paper#6401 | Written in 18-Jul-2015

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