GGGEOgeoCorporation manufactures shown below. single product. The standard cat p
ID: 2559103 • Letter: G
Question
GGGEOgeoCorporation manufactures shown below. single product. The standard cat per unit of product is Direct materials-1 pound plastic at $7 per pound Direct labor-2.50 hours at $11.80 per hour Variable manufacturing overhead Flxed manufacturing overhead Total standard cost per unit 7.00 29.50 17.50 17.50 $71.50 The predetermined manufacturing overhead rate is $14 per direct labor hour ($35.00 + 2.50). It was computed from a master manufacturing overhead budget based on normal production of 13,250 direct labor hours (5,300 units) for the month. The master budget showed total variable costs of $92,750 ($7.00 per hour) and total fixed overhead costs of $92,750 ($7.00 per hour). Actual costs for October in producing 3,900 units were as follows. $ 28,613 116,160 103,738 34,862 $283,373 Direct materials (4,030 pounds) Direct labor (9,600 hours) Variable overhead Fixed overhead Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute all of the materials and labor veriances. (Round answers to 0 decimal places, e.g. 125.) Unfavorable Unfavorable Unfavorable Total materials variance 1313 403 910 Materials price veriance Materials quantty variance Total labor veriance Labor price veriartceExplanation / Answer
Total labour variance = (3900*29.50-116160) = 1110 Unfavorable
Labour rate variance = (11.80*9600-116160) = 2880 Unfavorable
Labour efficiency variance = (3900*2.50-9600)*11.80 = 1770 Favorable
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