Question: Piedmont Manufacturing produces metal products with the followin

Piedmont Manufacturing produces metal products with the following standard quantity and cost information:


Overhead rates were based on normal monthly capacity of 6,000 machine hours.
During November, the company produced only 850 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November:
Material
Aluminum ....... 4,000 sheets purchased at $3.80; used 3,500 sheets
Copper ......... 3,000 sheets purchased at $8.40; used 2,600 sheets
Direct Labor
Regular time ..... 5,200 hours at $16 (pre-contract settlement)
Regular time ..... 900 hours at $17 (post-contract settlement)
Variable Overhead
$23,300 (based on 4,175 machine hours)
Fixed Overhead
$18,850 (based on 4,175 machine hours)
Determine the following:
a. Total material price variance
b. Total material usage (quantity) variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance
g. Fixed overhead spending variance
h. Volume variance
i. Budgetvariance
View Solution:


Sale on SolutionInn
Sales63
Views2202
Comments
  • CreatedJuly 24, 2012
  • Files Included
Post your question
5000