Spam Inc. had the following standard costs and plans for fiscal current year for the production of
Fantastic news! We've Found the answer you've been seeking!
Question:
Spam Inc. had the following standard costs and plans for fiscal current year for the production of custom meat products
Plan 500,000 Plan
Direct Material .5 lbs meat per unit at $1.20 per lb
Direct Labor 6 hrs at $12 per hour
Overhead $3.50 per unit variable overhead
$600,000 fixed overhead
Actual
490,000 units
235,200.00 lbs $272,832.00
308,700.00 hrs $3,627,225.00
$1,690,500.00 variable overhead
$612,000.00 fixed overhead
Calculate price and efficiency variances for all of the above and briefly explain what they mean and why the variances may have occurred
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date: