-> O eztomheducation.comhmtpx Tnco Company set the following standard unit costs
ID: 2543712 • Letter: #
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-> O eztomheducation.comhmtpx Tnco Company set the following standard unit costs for its single product Direct materials (29 lbs.O $4 per lb) Direct labor (8 hrs. @$8 per hr.) Factory overhead-verable (8 hrs, o $5 per hr) Factory overhead-fixed (8 hrs O $7 per hr) 116.00 64.00 40.00 56.00 Totel standard cost 276.00 The predetermined overhead rate is based on a planned operating volume of 70% or the pr of 80,000 units per quarter. The following flexitble budget information is evailable oductive capacity Operating Levels 60% 48.000 70% 56.000 80% 64.000 Production in unns Standard direct lebor hours Budgeted overhead 384,000 448,000 512,000 Fixed factory overheed Variable factory overhead s 3,136,000 $ 3,136,000 $3,136,000 $ 1920,000 $2 240,000 $2,560,000 Dunn e current quarter, the company operated at 80% of capacity and produced 64 0 unts or product octusl direct labor totaled 508,000 hours. Unts produced were essigned the following standerd costs Direct meterials (1856,000 ibs. O $4 per ib.j Direct labor (512.000 hrs. O $8 per hr Fectory overheed (512,000 hrs. O $12 per hr.) S 7.424,000 4,096,000 6,144,000 Total standard cost $ 17,664,000 Actuel costs incurred during the current quarter tolow Oirect matenals (1851,000 tbs o $4 30 per to.) s 7,589 00 Direct lobor (508,000 hrs o $7 75 per te) 3.937,000 Fixed factory overhead coss Vonabie fectory overhend costs 4.504,906 4,217.358 20248364 Type here to searchExplanation / Answer
Actual Cost 185100 -20000 Standard Cost AQ x AP AQ x SP SQ x SP 1,851,000 x $4.10 1,851,000 x $4.00 1,856,000 x $4.00 $7,589,100.00 $7,404,000.00 $7,424,000.00 $185,100.00 165100 20000 Direct materials price variance 185100 Unfavorable Direct materials quantity variance 20000 Favorable Total direct materials variance $165,100 Unfavorable
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