Question: please complete all requirements Data table More info At the 40,000 budgeted direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $1,000,000, budgeted

please complete all requirements
please complete all requirements Data table More info At the 40,000 budgeted
direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $1,000,000,
budgeted variable manufacturing overhead is $400,000, and budgeted fixed manufacturing overhead is
$1,040,000. The standard cost per pound of direct materials is $11.50. The
standard allowance is 6 pounds of direct materials for each unit of
product. During August, 30,000 units of product were produced. There was no

Data table More info At the 40,000 budgeted direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $1,000,000, budgeted variable manufacturing overhead is $400,000, and budgeted fixed manufacturing overhead is $1,040,000. The standard cost per pound of direct materials is $11.50. The standard allowance is 6 pounds of direct materials for each unit of product. During August, 30,000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $1.10 per pound. In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $240,000. There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $0.50 per hour. Requirements 1. Compute the following for August: a. Total pounds of direct materials purchased b. Total number of pounds of excess direct materials used c. Variable manufacturing overhead spending variance d. Total number of actual direct manufacturing labor-hours used e. Total number of standard direct manufacturing labor-hours allowed for the units produced f. Production-volume variance 2. Describe how Bruno's control of variable manufacturing overhead items differs from its control of fixed manufacturing overhead items. The Bruno Company uses a flexlbe budget and standard costs to aid planning and control of its machining manutacturing operations. Iss costing system for manufacturing has two direct-cost calegories (drect materials and direct manufacturing labor-both variable) and two cverheod-cost categories (variable tranictacturing overhead and fored manulacturing overhead, both allocaled uting direct manufacturing laboc hourt). The following actual results are for August Requirement 1. Compute the lated. amounts for August. Determine the formula, then complete the computation for each. (Abbirviations used: DM = Direct materials, mlg w manu/acturing. OH w Overtiesd.) a. Total pounds of drect materials purchased. Determine the formula, then complete the computation for each step below. Begin by computing the standard direct manufacturing labor rate. Now compute the total number of actual direct manulacturing labor hours used. e. Total number of standard direct manufacturing labor-hours allowed for the units produced. Determine the formula, then complete the computation for each step below. Begin by computing the standard variable manutacturing overhead Excoss Now compute the total number of standard direct manufacturing labor-hours allowed for the units produced. Standard hrs allowed for units produced f. Production-volume variance. Determine the formula, then complete the computation for each step below. Begin by computing the budgeted fixed manufacturing overhe Next, compute the fixed manufacturing overhead allocated. Requirement 2. Describe how Bruno's control of variable manulacturing overhead tems delers from its control of foed manufactuting overhesd items. The conted of variable manufacturing overhead requees much by day-to-day control. Thev are contrallant Individual variable manufacturing overhed tems ase affected very Individual fwed manclacturing overhesd llems are aflected very much by day to-day control. They are controled

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!