Fletcher Company collected the following data regarding production of one of its

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance Direct labor standard (2.0 hrs $13.80/hr.) Actual direct labor hours Budgeted units Actual finished units produced Standard variable OH rate (2 hrs. @14.00/hr.) Standard fixed OH rate ($353,500/5e, 500 units) Actual cost of variable overhead costs incurred Actual cost of fixed overhead costs incurred $26.00 per finished unit Product A has a sales price of $16 per unit. Based on a 14,000-unit production level, the variable costs are $9 per unit and the fixed costs are $6 per unit. Using a flexible budget for 16,500 units, what is the budgeted operating income from Product A? A. 16,500 B. 31,500 C. 40,000 D. 84,000 E. 50,500 98,500 hrs 50,500 units 48,500 units 28.00 per finished unit 7.00 per unit $1,351,000 $ 560,000 A. 14,100 F B. 7,000F C. 20,750 U D.20,750 F E. 21,100 U 25 A company provided the following direct materials cost information. Compute the direct materials price variance. Standard costs assigned: Direct materials standard cost (422,800 units $3.40/unit) Actual costs: Direct Materials costs incurred (419,300 units $3.50/unit) $1,434,800 $1,467,550 A. 1,434,800 F B. 1,434,800 U C. 41,930 U D. 41,930 F E. 42,200F

Explanation / Answer

Solution 23 Actual Production 48500 Standard Usage 2 Standard price 14 per hour Allocated costs =48500*2*14          1,358,000 Actual Variable overhead costs          1,351,000 Variance                  7,000 Favorable So option B is correct Solution 24 Production level 14000 Fixed cost per unit 6 Total Fixed csot =14000*6                84,000 Budgeted income statement Sale price-16500*16              264,000 Variable cost-16500*9           (148,500) Fixed cost              (84,000) Operating income                31,500 So option B is correct Solution 25 Standard price o fmaterial 3.4 Actual price 3.5 Standard usage 422000 Price variance =(3.4-3.5)*422000              (42,200)

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.