Flann Kunzangs, LLC is a small manufacturer of a yard decor. The following information pertains to Q2's
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Flann Kunzangs, LLC is a small manufacturer of a yard decor. The following information pertains to Q2's production of their very popular concrete gnome. |
Variable and fixed overhead are applied based on Direct Labor Hours |
Standards |
Material: 2.3 pounds per Unit @ $4 per pound |
Labor: 2 hours per Unit @ $13.5 per hour |
Variable OH: 2 hours per Unit @ $3 per hour |
Fixed OH: 2 hours per Unit @ $0.75 per hour* |
*based on budgeted production of 12,700 Units |
Actuals |
Production: 13,000 Units produced during the month |
Material: 29,200 pounds purchased and used @ $3.85 per pound |
Labor: 26,200 direct labor hours @ $13.6 per hour |
Variable OH: $75,680 |
Fixed OH: $19,450 |
Determine the following: |
1. Material price variance |
2. Material usage (quantity) variance |
3. Labor rate variance |
4. Labor efficiency variance |
5. Variable overhead spending variance |
6. Variable overhead usage variance |
7. Fixed overhead spending variance |
8. Fixed overhead volume variance |
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
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