Benton Company uses a standard cost system for its single product. The following data are available: Actual
Question:
Benton Company uses a standard cost system for its single product. The following data are available:
Actual experience for the current year:
Purchases of raw materials (15,000 yards at $13 per yard)
$195,000
Raw materials used
12,000 yards
Direct labor costs (10,200 hours at $10 per hour)
$102,000
Actual variable overhead cost
$84,150
Units produced
12,600 units
Standards per unit of product:
Raw materials
1.1 yards at $15 per yard
Direct Labor
0.8 hours at 9.50 per hour
Variable overhead
$8 per direct labor hour
Compute and name (do not abbreviate) variable and fixed overhead variances, assuming that 12,000 units were budgeted to be produced and that budgeted fixed overhead was $38,400 and actual fixed overhead incurred was
$40,000.Also determine the amount of under-or overapplied overhead. Type only the names of the variances, the amount, and the amount of over- or under- applied overhead below and show your work on the scratch paper.
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele