Franklin Furniture Co. uses a standard cost system in accounting for its production costs. The standard cost
Question:
Franklin Furniture Co. uses a standard cost system in accounting for its production costs. The standard cost of a unit of furniture follows:
Lumber, 100 ft @ $150 per 1,000 ft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.00
Direct labor, 4 hr @ $10 per hr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00
Factory overhead:
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The following flexible monthly overhead budget applies:
Direct Labor Hours Estimated Overhead
5,200 ..........$21,600
4,800 ..........20,400
4,400 ..........19,200
4,000 (normal capacity) ...18,000
3,600..........16,800
The actual unit costs for the month of December follow:
-2.png)
Required:
Compute the variances for materials, labor, and factory overhead, using the three variance method for overheadcosts.
Step by Step Answer:
Schedule of Variances from Standard Cost for December ThreeVariance Method Favorable variances Mater...View the full answer
