Menounos Manufacturing Co. uses standard costs. Standard costs and actual costs for direct labor and factory...

 

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Menounos Manufacturing Co. uses standard costs. Standard costs and actual costs for direct labor and factory overhead for the manufacture of 3,000 units during 2016 were as follows: Direct labor Factory overhead Standard Costs 7,500 hours at $12.00 per hour Rates per direct labor hr., based on 100% of normal capacity of 8,000 direct labor hrs.: Variable cost, $2.20 Fixed cost, $0.90 Each unit requires 2.5 hours of direct labor. Compute the: a. variable factory overhead controllable variance. b. fixed factory overhead volume variance. C total factory overhead cost variance. Actual Costs 7,420 hours at $12.30 per hour $16,850 variable cost $7,200 fixed cost Menounos Manufacturing Co. uses standard costs. Standard costs and actual costs for direct labor and factory overhead for the manufacture of 3,000 units during 2016 were as follows: Direct labor Factory overhead Standard Costs 7,500 hours at $12.00 per hour Rates per direct labor hr., based on 100% of normal capacity of 8,000 direct labor hrs.: Variable cost, $2.20 Fixed cost, $0.90 Each unit requires 2.5 hours of direct labor. Compute the: a. variable factory overhead controllable variance. b. fixed factory overhead volume variance. C total factory overhead cost variance. Actual Costs 7,420 hours at $12.30 per hour $16,850 variable cost $7,200 fixed cost

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The Question provides the data for 3000 units manufactured in 20Y6 as follows Labour Hour required e... View the full answer