Problem - Straightforward Variance Analysis

Assignment Help Accounting Basics
Reference no: EM132460176

Problem - Straightforward Variance Analysis

Arrow Enterprises uses a standard costing system. The standard cost sheet for product No. 549 follows:

Direct materials: 4 units @ $6.50 $26.00

Direct labor: 8 hours @ $8.50 68.00

Variable factory overhead: 8 hours @ $7.00 56.00

Fixed factory overhead: 8 hours @ $2.50 20.00

Total standard cost per unit $170.00

The following information pertains to activity for December:

1) Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations.

2) Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity.

3) Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year.

4) Actual production amounted to 6,700 completed units.

Instructions -

a. Compute Arrow's direct material variances.

b. Compute Arrow's direct labor variances.

c. Compute Arrow's variances for factory overhead.

Reference no: EM132460176

Questions Cloud

What is the combined present value of cash flows : You are scheduled to receive a $450 cash flow in one year, a $950 cash flow in two years, and pay a $750 payment in three years.
What is the cash provided by investing activities : What is the cash provided (used) by investing activities for the year ended December 31, 2009, as a result of the above information?
What is the npv of buying the new lathe : The discount rate is 15%, and the corporate tax rate is 21%. What is the NPV of buying the new lathe?
What is the after-tax cash flow from sale of equipment : The firm's tax rate is 30%. What is the after-tax cash flow from the sale of the equipment?
Problem - Straightforward Variance Analysis : Problem - Straightforward Variance Analysis - Total overhead incurred amounted to $508,400. Compute Arrow's direct material variances
Prepare incremental analysis : Prepare incremental analysis for the 5 years showing whether Hancock should keep the existing machine or buy the new machine.
How much total income should pondu recognize : How much total income should Pondu recognize for 20X3 related to this investment?determining the appropriate accounting method for Pondu to use for investment
Was publishing effective means of mobilizing social change : Was African-American history from 1865 to 1918 a story of progress? Why or why not? Was publishing effective means of mobilizing social change? Why or why not?
Find newly appointed controller of butch baking corporation : The Company's net income before taxes was $3,500,000 for 20x2 and $4,400,000 for 20x3. Find newly appointed controller of Butch Baking Corporation

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd