J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console

Question:

J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows:
Direct materials, ? kilograms at $8 per kilogram . . . . $ ? per game
Direct labor, 0.75 hours at ? per hour . . . . . . . . . . . . . ? per game
Overhead, 0.75 hours at ? per hour . . . . . . . . . . . . . ? per game
Total costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $39 per game
Assume that the following data appeared in J&W's records at the end of the past month:
Actual production . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000 units
Actual sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 units
Materials (112,500 kilograms) . . . . . . . . . . . . . . . . $157,500
Materials price variance . . . . . . . . . . . . . . . . . . . . . 45,000 U
Materials efficiency variance . . . . . . . . . . . . . . . . . 36,000 U
Direct labor price variance . . . . . . . . . . . . . . . . . . . 27,360 U
Direct labor (34,200 hours) . . . . . . . . . . . . . . . . . . 574,560
Under applied overhead (total) . . . . . . . . . . . . . . . . 18,000 U
There are no materials inventories.
Required
a. Prepare a variance analysis for direct materials and direct labor and complete the standard cost sheet.
b. Assume that all production overhead is fixed and that the $18,000 under applied is the only overhead variance that can be computed. What are the actual and applied overhead amounts?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

Question Posted: