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Santa Inc. manufactures toys based on the following information.

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Santa Inc. manufactures toys based on the following information.;Standard costs;Materials (4 ounces at $4) $16;Direct labor (1 hour per unit) $7;Variable overhead (based on direct labor hours) $3.50;Fixed overhead budget $16,000;Actual results and costs;Materials purchased;Units 10,000;Cost $38,500;Materials used in production;Finished product units 2,200;Raw material (ounces) 9,500;Direct labor hours 2,200;Direct labor cost $18,000;Variable overhead costs $8,400;Fixed overhead costs $16,200;Required;Compute the following variances (show calculations).;A. Materials usage variance;B. Labor rate variance;C. Fixed overhead budget variance

 

Paper#76236 | Written in 18-Jul-2015

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