Budgeted fixed manufacturing overhead for the period is

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Reference no: EM13480530

The following standard costs were developed for one of the products of Ferrars Company:

Standard Cost Card
Per Unit

Materials: 4 feet x $14.25 per foot $ 57.00

Direct labor: 8 hours x $10 per hour 80.00

Variable overhead: 8 direct labor hours x $8 per hour 64.00

Fixed overhead: 8 direct labor hours x $12 per hour 96.00

Total standard cost per unit $297.00

The following information is available regarding the company's operations for the period:

Units produced: 11,000

Materials purchased: 52,000 feet @ $13.95 per foot

Materials used: 40,000 feet

Direct labor: 84,000 hours costing $840,000

Manufacturing overhead incurred:

Variable $756,000

Fixed $1,000,000

Budgeted fixed manufacturing overhead for the period is $960,000, and the standard fixed overhead rate is based on expected capacity of 80,000 direct labor hours.

Required:

a. Calculate the materials price variance.

b. Calculate the materials usage variance.

c. Calculate the direct labor rate variance.

d. Calculate the direct labor efficiency variance.

e. Calculate the variable manufacturing overhead spending variance.

f. Calculate the variable manufacturing overhead efficiency variance.

g. Calculate the fixed manufacturing overhead spending variance.

h. Calculate the fixed manufacturing overhead volume variance.

i. Prepare all necessary journal entries.

Reference no: EM13480530

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