Below is a schedule showing the breakdown of standard cost assumptions for the month, based on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Below is a schedule showing the breakdown of standard cost assumptions for the month, based on a normal operating capacity of 2,000 units: Standard Cost Assumptions: Rate $ Direct material (kg) Direct labour (hour) Variable overhead Units produced Cost of direct material purchased Price paid for direct materials (per kg) Amount of direct material used (kg) Direct labour rate (per hour) Cost of direct labour Usage (consumed per unit) Fixed overhead Total Factory overhead is applied on the basis of standard direct labour hours. For the month the following actual cost data was obtained: Actual Cost Data: Variable overhead Fixed overhead 0.7 0.5 0.5 0.5 2,100 $50,820.00 $33.00 2. Variable overhead efficiency variance (3 marks) VOHEV = (AH-SH) X SVOR 1,500 $20.50 $22,550.00 $3,500.00 $8,000.00 Required: Calculate the following variances for the month: 1. Variable overhead spending variance (3 marks) VOHSV = Actual VOH-SVOR X AH $30.00 $20.00 $2.50 $7.00 Standard cost per unit $21.00 $10.00 $1.25 $3.50 $35.75 Below is a schedule showing the breakdown of standard cost assumptions for the month, based on a normal operating capacity of 2,000 units: Standard Cost Assumptions: Rate $ Direct material (kg) Direct labour (hour) Variable overhead Units produced Cost of direct material purchased Price paid for direct materials (per kg) Amount of direct material used (kg) Direct labour rate (per hour) Cost of direct labour Usage (consumed per unit) Fixed overhead Total Factory overhead is applied on the basis of standard direct labour hours. For the month the following actual cost data was obtained: Actual Cost Data: Variable overhead Fixed overhead 0.7 0.5 0.5 0.5 2,100 $50,820.00 $33.00 2. Variable overhead efficiency variance (3 marks) VOHEV = (AH-SH) X SVOR 1,500 $20.50 $22,550.00 $3,500.00 $8,000.00 Required: Calculate the following variances for the month: 1. Variable overhead spending variance (3 marks) VOHSV = Actual VOH-SVOR X AH $30.00 $20.00 $2.50 $7.00 Standard cost per unit $21.00 $10.00 $1.25 $3.50 $35.75
Expert Answer:
Answer rating: 100% (QA)
To calculate the variances we need to use the following formulas 1 Variable Overhead Spending Varian... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
In an overseas location, Warrenton Fashions Inc. manufactures ladies' blouses of one quality, produced in lots to fill each special order. Its customers are department stores located in various...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining an economical sales and...
-
Let F = [F] lb. a) Determine the force Fp acting at roller D. b) Determine the force FE acting at pin E. F 4 ft B 600 lb. ft -3 ft C -3 ft OD -2 ft- E
-
For laminar boundary layer flow over a flat plate with air at 20C and 1 atm, the thermal boundary layer thickness 8r is approximately 13% larger than the velocity boundary layer thickness 8....
-
CPA firm is engaged in the examination of the financial statements of Zeitlow Corporation for the year ended December 31, 2004. Zeitlow Corporations financial statements and records have never been...
-
To compute the test statistic for a test with matched pairs, we must compute the standard deviations of the samples. In Exercises 5 and 6, determine whether the statement is true or false. If the...
-
James Hardy recently rejected a $20,000,000, five-year contract with the Vancouver Seals. The contract offer called for an immediate signing bonus of $5,000,000 and annual payments of $3,000,000. To...
-
Using mcconnell dowell 2021 annual report. Can u find out what is the a. Assets Ratio of the company and explain what this means. b. Liability Ratio of the company and explain what this means. c....
-
Max and Annie are roommates sharing an apartment. Although they know each other well, they have respect for each others privacy. Thus, when Maxs Form 1040 was audited by the IRS, he made no mention...
-
Use linear approximation to x + 4xy + y at the point (5, 5, 150), and use it to approximate f(5.15, 5.26) =
-
Thoughts on Extreme outlier ?
-
has anyone ever evaluated the effectiveness of your staffing and selection process in terms of quality of hire or retention?describe the evaluation process and the outcome. what did you change in...
-
low-ranking staff member who is on a first name basis with the Director/Executive Officer?)
-
Discuss the key components of behavior modeling training.
-
Assess the risks to determine which you believe are big. Which two of these risks do you feel are showstoppers? How would you plan a risk-based spike for one of these big risks?
-
Grant writers use research skills both to access internal organizational information and to support their arguments on project needs and solutions. What do you still need to know about your...
-
At Glass Company, materials are added at the beginning of the process and conversion costs are added uniformly. Work in process, beginning: Number of units Transferred - in costs Direct materials...
-
What are the advantages and disadvantages of each of the three different methods of separating fixed and variable components of costs?
-
Western company is evaluating a capital project that will require a $60,000 initial cash investment and will last 5 years. Net aftertax cash inflows from the project, before adjusting for the effects...
-
Lacy Products is a regional firm that operates a manufacturing plant. Raw materials are purchased and stored until their introduction into the manufacturing process. On completion, finished products...
-
For each of the following events concerning disclosure of events that took place after year end, discuss the manner in which it should be disclosed in the financial statements or the audit report....
-
Determining whether a subsequent event requires an adjustment to the financial statements is difficult in many circumstances. Discuss the primary difference between subsequent events that require...
-
Each of the following techniques for managing earnings was described in the chapter: - "Big Bath" charges - Write-off of acquired assets - "Cookie Jar" reserves - Abuse of materiality - Questionable...
Study smarter with the SolutionInn App