Hawley, Inc. manufactures Product S for national distribution. The standard costs for the manufacture of Product S
Question:
Hawley, Inc. manufactures Product S for national distribution. The standard costs for the manufacture of Product S were as follows:
Standard Costs Actual Costs
Direct materials 1,500 pounds at $35 1,600 pounds at $32
Direct labor 4,800 hours at $11 4,500 hours at $11.80
Factory overhead Rates per labor hour
Based on 100% of normal
Capacity of 5,500 labor hours:
Variable cost, $2.40 $12,300 variable cost
Fixed costs, $3.50 $19,250 fixed cost
Instructions
1. Determine the quantity variance, price variance, and total direct materials cost variance for Product S.
2. Determine the time variance, rate variance, and total direct labor cost variance for Product S.
Using the information from Problem III
1. Determine the controllable variance, volume variance, and total factory overhead cost variance for Product S
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver