Your company has forecasted 400 units of product 'A' 1 Expected material usage for product 'A' is
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Question:
Your company has forecasted 400 units of product 'A' | |
1 | Expected material usage for product 'A' is 1 foot of material per unit |
2 | Expected material price for each unit of product 'A' is $5 per foot |
3 | Expected labor hours for product 'A' is 3 hours per unit |
4 | Expected labor rate for product 'A' is $20 per hour |
5 | Expected variable labor efficiency is $2 |
6 | Variable overhead is apportioned using direct labor hours |
7 | Budgeted fixed overhead was $30,000 for the year |
8 | Budgeted volume was 10,000 units for the year |
Your company actually produced 500 units of product 'A' | |
7 | Actual material usage for product 'A' was 1.5 feet of material per unit |
8 | Actual material price for product 'A' was $7 per foot |
9 | Actual labor hours for product 'A' was 2 per unit |
10 | Actual labor rate for product 'A' was $10 per hour |
11 | Total spend on fixed manufacturing overhead was $25,000 for the year |
12 | Total direct labor hours were 8,000 for the year |
13 | Actual volume was 12,000 units for the year |
Requirement |
Calculate the total usage variance and give one reason why this variance may have arisen |
Calculate the total purchase price variance and give one reason why this variance may have arisen |
Calculate the labor rate variance and give one reason why this variance may have arisen |
Calculate the labor efficiency variance and give one reason why this variance may have arisen |
Calculate the variable overhead efficiency variance and give one reason why this variance may have arisen |
Calculate the variable overhead spending variance and give one reason why this variance may have arisen |
Calculate the pre-determined manufacturing overhead rate |
Calculate the fixed manufacturing budget variance and give one reason why this variance may have arisen |
Calculate the fixed manufacturing volume variance and give one reason why this variance may have arisen |
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
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