Calculate each of the following variances and provide

Reference no: EM13600779

Explain results The standards for one case of Springfever Tonic are:

Direct materials . . . . . . . . . . . . . . . . . . 8 lbs. @ $3.00/lb. = $24
Direct labor . . . . . . . . . . . . . . . . . . . . . 6 hrs. @ $1 0.00/hr. = 60
Variable overhead (based
on direct labor hours) . . . . . . . . . . . . 6 hrs. @ $5.00/hr. = 30

During the week ended April 27, the following activity took place:

14,800 lbs. of raw materials were purchased for inventory at a cost of $2.97 per pound.
2,000 cases of ?nished product were produced.
16,600 lbs. of raw materials were used.
11,600 direct labor hours were worked at a total cost of $121,800.
$60,900 of actual variable overhead costs were incurred.

Required:
Calculate each of the following variances and provide plausible explanations for the results:
a. Price variance for raw materials purchased.
b. Raw materials usage variance.
c. Direct labor rate variance.
d. Direct labor ef?ciency variance.
e. Variable overhead spending variance.
f. Variable overhead ef?ciency variance.

Reference no: EM13600779

Questions Cloud

Calculate a teller efficiency variance for the 1100 to 100 : banking application pioneer state bank developed a standard for teller staffing that provided for one teller to handle

Explain some of the advantages and disadvantages of : explain some of the advantages and disadvantages of standard costs? if you were or are a manager how do you determine

Insurance company application the farrell insurance company : insurance company application the farrell insurance company developed standard times for processing claims. when a

Pollitt potato packers has a flexible budget for : pollitt potato packers has a flexible budget for manufacturing overhead that is based on direct labour-hours. the

Calculate each of the following variances and provide : explain results the standards for one case of springfever tonic are direct materials . . . . . . . . . . . . . . . . .

Elson corporation a retail fuel oil distributor has : elson corporation a retail fuel oil distributor has increased its annual sales volume to a level three times greater

During a year southside metals reported income tax expense : during a year southside metals reported income tax expense of 200000. the amount of taxes currently payable remained

Compare your findings in parts a and b with those in part d : integrative-risk return and capm wolff enterprises must consider several investment projects a through e using the

The maintenance departments costs are allocated to other : the maintenance departments costs are allocated to other departments based on the number of hours of maintenance use by

User Account

All Pages