Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price
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Question:
Majer Corporation makes a product with the following standard costs:
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
---|---|---|---|---|---|
Direct materials | 6.4 | ounces | $ 3.00 | per ounce | $ 19.20 |
Direct labor | 0.4 | hours | $ 13.00 | per hour | $ 5.20 |
Variable overhead | 0.4 | hours | $ 5.00 | per hour | $ 2.00 |
The company reported the following results concerning this product in February.
Originally budgeted output | 4,800 | units |
---|---|---|
Actual output | 4,900 | units |
Raw materials used in production | 30,230 | ounces |
Actual direct labor-hours | 1,910 | hours |
Purchases of raw materials | 32,600 | ounces |
Actual price of raw materials | $ 2.90 | per ounce |
Actual direct labor rate | $ 12.40 | per hour |
Actual variable overhead rate | $ 4.90 | per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for February is:
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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