Lily Corporation manufactures a single product. The standard cost per unit of product is shown below....

Transcribed Image Text:

Lily Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $8 per pound $8.00 Direct labor-2.0 hours at $12.50 per hour 25.00 11.00 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 13.00 $57.00 The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00 +2.0). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours (5,900 units) for the month. The master budget showed total variable overhead costs of $64,900 ($5.50 per hour) and total fixed overhead costs of $76.700 ($6.50 per hour). Actual costs for October in producing 4.500 units were as follows. Direct materials (4,670 pounds) $38,294 Direct labor (8.880 hours) 113,664 Variable overhead 76,680 Fixed overhead 33,520 Total manufacturing costs $262,158 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. Overhead controllable variance $ Overhead volume variance $ Lily Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $8 per pound $8.00 Direct labor-2.0 hours at $12.50 per hour 25.00 11.00 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 13.00 $57.00 The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00 +2.0). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours (5,900 units) for the month. The master budget showed total variable overhead costs of $64,900 ($5.50 per hour) and total fixed overhead costs of $76.700 ($6.50 per hour). Actual costs for October in producing 4.500 units were as follows. Direct materials (4,670 pounds) $38,294 Direct labor (8.880 hours) 113,664 Variable overhead 76,680 Fixed overhead 33,520 Total manufacturing costs $262,158 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. Overhead controllable variance $ Overhead volume variance $

Answer rating: 100% (QA)

Answer how to compute the overhead controllable variance and the overhead volume variance for Lily C... View the full answer