13. The Lucy Corporation purchased and used i29 ??? board feet ofinter inrederon
ID: 2406967 • Letter: 1
Question
13. The Lucy Corporation purchased and used i29 ??? board feet ofinter inrederona tetal cost of $1,548,000. Original production hod been budgeted for 22,000 units with a standard material quantity of 5.7 beard feet per unit and a stondard price of $12 per board foot. Actual production was 23,.500 units. Compute the meterial price variance a $0 b. $59400 U c. $59,400 F d. $6,000 u e $6,000 F 14. Refer to question 13 above. Compute the material quantity veriance. a. $63,000 F b. $63,000 U c. $59400 F d. $59,400 u e. $0 i flexible budget for overhead for Eestern Cruiser, Inc. for the month of November Percent of Normal Capacity Units Preduced ? 4500 6250i03 5,000 $16200 18,000 29.800 5,625 875 5,500 Labor Hours (0 8 hrs per unit) Variable Overhead Fixed Overhead $12000 $12000 $12000 During Nevember, Eestern Cruiser actually produced 5,000 incurred were units Achual overhead cests Variable Overhead Fixed Overhead Total Overhead $10,400 $22 400 What are the Variable Overhead Cantrallable Variances and $7,600 F: $0 $4,000 F. So d $4,000F: $2,400U $760OF: $2.400Explanation / Answer
13)
Budgeted production = 22000 units
Standard material quantity = 5.7 board feet per unit
Standard price = 12 per board feet
Actual price per board feet = Total actual cost/Total actual quantity = 1548000/129000 = 12 per board feet
Material price variance = Change in price*Actual quantity = (12 - 12)*129000 = 0*129000 = 0
Answer is a. $0
14)
Budgeted quantity for actual production = 5.7 board feet * 23500 units = 133950
Actual quantity used = 129000
Standard price = 12 per board feet
aterial quantity variance = Change in quantity*Standard price
= (133950 - 129000)*12 = 59400F
Answer is c. $59,400 F
15)
Actual variable overhead = 10400
Budgeted variable overhead = 18000*(5000/6250) = 18000*0.8 = 14400
Variable overhead controllable variances = 14400 - 10400 = 4000F
Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overhead
= 12000 - 12000 = 0
Answer is c. $4000 F, $0
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