Question: I am assigned a homework problem to do, but I am completely lost...I could really use some help please! On the whole thing.. Here it

I am assigned a homework problem to do, but I am completely lost...I could really use some help please! On the whole thing..

Here it is:

Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given:

Standard costs per unit:

Raw materials (1.5 grams at $16.00 per gram).......................... $24.00

Direct labor (0.75 hours at $8 per hour)........................................ $6.00

Variable overhead (0.75 hours at $3 per hour)............................ $2.25

Actual experience for current year:

Units produced.................................................................................. 22,400 units

Purchases of raw materials (21,000 grams at $17 per gram). $357,000

Raw materials used......................................................................... 33,400 grams

Direct labor (16,750 hours at $8 per hour)................................... $134,000

Variable overhead cost incurred..................................................... $48,575

Compute the following variances:

a. Direct materials price variance

b. Direct materials quantity variance

c. Direct labor rate variance

d. Direct labor efficiency variance

e. Variable overhead spending variance

f. Variable overhead efficiency variance

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!