Question: Help! Having trouble computing, if you can show your work I would greatly appreicate it. A quantity of 1,200 gallons of Material X is purchased
Help! Having trouble computing, if you can show your work I would greatly appreicate it. A quantity of 1,200 gallons of Material X is purchased at a price of $4.50 per gallon. The standard price is $4.00 per gallon. The journal entry for this purchase will include a:
debit to Work in Process for $4,800
debit to Direct Materials Price Variance for $600
credit to Direct Materials Price Variance for $600
d. debit to Materials for $5,400
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:
| Standard: | 25,000 hours at $10 | $250,000 | ||||||||||||||||
| Actual: | Variable factory overhead | 202,500 | ||||||||||||||||
| Fixed factory overhead | 60,000 | |||||||||||||||||
| What is the amount of the factory overhead volume variance?
The Joyner Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead controllable variance.
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