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?

$12,500 unfavorable
$12,500 favorable
$10,000 unfavorable
$10,000 favorable

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.

9,000U
5,500U
5,500F
9,000F

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!