The normal capacity of Howard Company's Assembly Department is 12,000 machine hours per month. At normal capacity,
Question:
The normal capacity of Howard Company's Assembly Department is 12,000 machine hours per month. At normal capacity, the standard factory overhead rate is $12.50 per machine hour, based on $96,000 of budgeted fixed cost per month and a variable cost rate of $4.50 per machine hour. During April, the department operated at 12,500 machine hours, with actual factory overhead of $166,000. The number of standard machine hours allowed for the production actually attained is 11,000.
Required:
Compute the overall factory overhead variance and then break the overall variance down into the controllable variance and the volume variance. Indicate whether the variance are favorable or unfavorable.
2.Labor Variance Analysis.
During the month, 1,200 units of Topo were produced. Actual direct labor required was 650 direct labor hours at an actual total cost of $ 6,370. According to the standard cost card for Topo, half an hours of labor should be required per unit of Topo produced, at a standard cost of $ 10 per labor hour.
Required:
Compute the labor rate and efficiency variances, indicating whether the variances are favorable or unfavorable.
3.Materials Variance Analysis.
Because it is concerned about high inventory carrying costs, Carlton Company follows the just-in-time inventory philosophy and treats increases in materials inventory as unfavorable variances and decreases as favorable variances. The company uses a standard cost system and inventories its materials at standard cost. The standard cost per unit of part R-33 is $ 22.50. During the current month, 5,000 unit of R-33 were purchased at a total cost of $ 110,000. In addition, 4,400 units of part R-33 were issued to production during the month; however, the standard quantity allowed for actual production is 4,300 units.
Required:
Compute the material purchase price variances, indicating whether the variances are favorable or unfavorable.
Expert Answer:
Overall Factory Overhead Variance Actual Factory Overhead 166000 Standard Factory Overhead Standard Fixed Cost Standard Variable Cost per Hour Actual ... View the full answer
