Problem 23-7A Your answer is partially correct. Try again. Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-3 pound plastic at $7.00 per pound $ 21.00 Direct labor-1.0 hours at

 

Transcribed Image Text:

Problem 23-7A Your answer is partially correct. Try again. Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-3 pound plastic at $7.00 per pound $ 21.00 Direct labor-1.0 hours at $11.00 per hour 11.00 6.00 10.00 $48.00 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $16 per direct labor hour ($16.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,800 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $34,800 ($6.00 per hour) and total fixed overhead costs of $58,000 ($10.00 per hour). Actual costs for October in producing 5,000 units were as follows. Direct materials (15,140 pounds). Direct labor (4,860 hours) Variable overhead Fixed overhead Total manufacturing costs 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 $ 107,494 54,432 56,000 26,300 $244,226 Overhead volume variance 2300 8000 Favorable Unfavorable Click if you would like to Show Work for this question: Open Show Work

• Expert Answer

We know that the formula of Total overhead controllable variance Actual overhead Budgeted overhea View the full answer