Ninna Company manufactures wooden shelves. An accountant for Ninna just completed the variance report for the current month. After printing the report, his computer’s hard drive crashed, effectively destroying most of the actual results for the month. The accountant remembers that actual production was 250 shelves and that all materials purchased were used in production. The following information is also available:

Instructions
Using the budget for the current month and the variance report, construct the items below:
a. What was the actual purchase price per square foot of wood?
b. How many labor hours did it actually take to produce each shelf?
c. What was the actual wage rate paid per hour?
d. What was the actual total overhead for themonth?

Transcribed Image Text:

Current Month: Budgeted Amounts Budgeted production: 225 shelves Direct materials: Wood . 4 square feet per shelf - ".. . $0.20 per square foot Usage Direct labor: Usage Rate: 0.4 hours per shelf . $12 per hour Variable overhead (allocated based on direct labor hours) Rate per labor hour $5 Rate per shelf. Fixed overhead (allocated based on direct labor hours) $2 $10 $4 Rate per labor hour Rate per shelf . urrent Month: Variances Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance Overhead volume variance Overhead spending variance . 40 Unfavorable -. 200 Favorable 300 Unfavorable 50 Favorable 100 Unfavorable