Question

Roger Oruh was a new cost accountant at Wagner Plastics Corporation. He was assigned to analyze the following data that his predecessor left him.
Planned volume for year (static budget) ..... 10,000 units
Standard direct materials cost per unit ...... 2 lbs. @ $1.80 per pound
Standard direct labor cost per unit ....... 0.5 hours @ $15.00 per hour
Total planned fixed overhead costs ........ $12,000
Actual volume for the year (flexible budget)... 10,800 units
Actual direct materials cost per unit ....... 1.9 lbs. @ $1.92 per pound
Actual direct labor cost per unit .......... 0.6 hrs. @ $12.00 per hour
Total actual fixed overhead costs ......... $12,400

Required
a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.
b. Calculate the materials price and usage variances and indicate whether they are favorable (F) or unfavorable (U).
c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.
d. Calculate the labor price and usage variances and indicate whether they are favorable (F) or unfavorable (U).
e. Calculate the predetermined overhead rate, assuming that Wagner Plastics uses the number of units as the allocation base.
f. Calculate the fixed manufacturing overhead cost spending variance and indicate whether it is favorable (F) or unfavorable (U).
g. Calculate the fixed manufacturing overhead cost volume variance and indicate whether it is favorable (F) or unfavorable (U).



$1.99
Sales0
Views103
Comments0
  • CreatedFebruary 07, 2014
  • Files Included
Post your question
5000