1. Blackman Company manufactures a product that has a standard direct labor cost of four hours per...
Question:
1. Blackman Company manufactures a product that has a standard direct labor cost of four hours per unit at $24 per hour. When producing 6,000 units, the foreman used a different crew than usual, resulting in a total labor cost of $26 per hour for 22,000 hours. Calculate labor variances and discuss the foreman's decision to use a different crew.
2. The following data refers to the manufacturing activities of the Strauss Company for the first quarter of the current year:
Standard activity (in units) | 30,000 |
Actual production (units) | 24,000 |
Budgeted Fixed Manufacturing Overhead | $36,000 |
Variable overhead rate (per unit) | $ 4.00 |
Actual Fixed Manufacturing Overhead | $37,200 |
Actual Variable Manufacturing Overhead Costs | $88,800 |
Calculate the overhead budget variance and the overhead volume variance. (Assume overhead costs are applied based on units produced.)
3. Assume that actual production in question 2 was 26,000 units instead of 24,000. What was the overhead volume variance?
Expert Answer:
Sure Id be happy to help you with these variance calculations and discussions 1 Labor Variances and Discussion To calculate the labor variances we need to break down the standard labor cost and actual ... View the full answer
