1) Agnew Corporation uses a standard cost system. The following information was
ID: 2349359 • Letter: 1
Question
1) Agnew Corporation uses a standard cost system. The following information was provided for the period that just ended:Actual price per kilogram $1.76
Actual kilograms of material used 61,500
Actual hourly labor rate $20.60
Actual hours of production 8,850
Standard price per kilogram $1.80
Standard kilograms per completed unit 5 kilograms
Standard hourly labor rate $20.00
Standard time per completed unit 3/4 hr.
Actual total factory overhead $64,500
Fixed factory overhead $30,000
Standard fixed factory overhead rate $3.00 per labor hour
Standard variable factory overhead rate $5.00 per labor hour
Maximum plant capacity 10,000 hours
Plant operated during the period 9,000 hours
Units completed during the period 12,000
The direct materials quantity variance is:
a. $2,700 favorable
b. $2,460 favorable
c. $2,460 unfavorable
d. $2,700 unfavorable
2) Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:
Actual price per kilogram $3.00
Actual kilograms of material used 31,000
Actual hourly labor rate $18.10
Actual hours of production 4,900 labor hours
Standard price per kilogram $2.80
Standard kilograms per completed unit 6 kilograms
Standard hourly labor rate $18.00
Standard time per completed unit 1 hr.
Actual total factory overhead $34,900
Fixed factory overhead $18,000
Standard fixed factory overhead rate $1.20 per labor hour
Standard variable factory overhead rate $3.80 per labor hour
Maximum plant capacity 15,000 hours
Plant operated during the period 10,000 hours
Units completed during the period 5,000
The variable factory overhead controllable variance is:
a. $6,000 favorable
b. $2,100 favorable
c. $2,100 unfavorable
d. $6,000 unfavorable
Explanation / Answer
b. $2,460 favorable a. $6,000 favorable
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