The following summarized manufacturing data relate to Thomas Corporations April operations, during which 2,000 finished units of
Question:
The following summarized manufacturing data relate to Thomas Corporation’s April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.
Standard Unit Costs Total Actual Costs
Direct material:
Standard (2 lb. @ $9/lb.) . . . . . . . . . . . . . . . . . . . $18
Actual (4,200 lb. @ $10.20/lb.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,840
Direct labor:
Standard (0.5 hr. @ $24/hr.) . . . . . . . . . . . . . . . . . 12
Actual (950 hrs. @ $23.40/hr.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,230
Variable overhead:
Standard (0.5 hr. @ $6/hr.) . . . . . . . . . . . . . . . . . . . . . . . . 3
Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,450
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33 $71,520
Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances.
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren