The following information is provided to assist you in evaluating the performance of the production operations of
Question:
The following information is provided to assist you in evaluating the performance of the production operations of Paramount Company: Units produced (actual) 21,000 Master production budget Direct materials 165,000 Direct labor 140,000 Overhead 199,000 Standard costs per unit Direct materials $1.65 x 5 pounds per unit of output Direct labor $14 per hour x
!
hour per unit Variable overhead $11.90 per direct labor-hour Actual costs Direct materials purchased and used $188,700 (102,000 pounds) Direct labor 140,000 (10,700 hours) Overhead 204,000 (61% is variable) Variable overhead is applied on the basis of direct labor-hours.
Required:
Prepare a report that shows all variable production cost price and efficiency variances and fixed production cost price and production volume variances
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher