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Peterson Manufacturing Corporation accumulates the...

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Peterson Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2011. Costs and Production Data Actual Standard Raw materials unit cost $2.25 $2.00 Raw materials units used 10,600 10,000 Direct labor payroll $122,400 $120,000 Direct labor hours worked 14,400 15,000 Manufacturing overhead incurred $184,500 Manufacturing overhead applied $189,000 Machine hours expected to be used at normal capacity 42,500 Budgeted fixed overhead for June $51,000 Variable overhead rate per machine hour $3.00 Fixed overhead rate per machine hour $1.20 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 $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used. Compute all of the variances for (1) direct materials and (2) direct labor. (Round intermediate calculations to 2 decimal places, e.g. 12.50 and final answers to 0 decimal places, e.g. 1,250.) Total materials variance $ Materials price variance $ Materials quantity variance $ Total labor variance $ Labor price variance $ Labor quantity variance $ Compute the total overhead variance. (Round intermediate calculations to 2 decimal places, e.g. 12.50 and final answers to 0 decimal places, e.g. 1,250.) $ Prepare an income statement for management. Ignore income taxes. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. For favorable variances use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Enter all other amounts as positive amounts and subtract where necessary.) PETERSON MANUFACTURING CORPORATION Income Statement For the Month Ended June 30, 2011 $ Gross profit (at standard) Variances $ Total variance - Gross profit (actual) Net income $

 

Paper#6404 | Written in 18-Jul-2015

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