The purchasing department buys the quantities of raw

Assignment Help Accounting Basics
Reference no: EM13588823

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials-2 pound plastic at $6.08 per pound
$ 12.16
Direct labor-1.50 hours at $11.00 per hour
16.50
Variable manufacturing overhead
11.25
Fixed manufacturing overhead
12.75
Total standard cost per unit
$52.66

The predetermined manufacturing overhead rate is $16 per direct labor hour ($24.00 ÷ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,700 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $65,250 ($7.50 per hour) and total fixed overhead costs of $73,950 ($8.50 per hour). Actual costs for October in producing 3,700 units were as follows.

Direct materials (7,580 pounds)
$ 48,057
Direct labor (5,420 hours)
60,975
Variable overhead
62,691
Fixed overhead
28,339
Total manufacturing costs
$200,062

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.

(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

Reference no: EM13588823

Questions Cloud

Assume that haig simmons realizes a loss on the futures : haig simmons operates an anthracite coal home heating and delivery service in baltimore and anne arundel counties. she
A chain discrete catenary has n links mass and length of : data a chain discrete catenary has n links mass and length of each link is known. one end of the catenary is fixed to
An office heater puts out 2010 btus british thermal units : an office heater puts out 2010 btus british thermal units of energy in the form of heat per hour. given that 1 btu
Conduct the test giving statistics the test statistic and : in 2005 congress passed the bankruptcy abuse prevention and consumer protection act.nbsp this act made significant
The purchasing department buys the quantities of raw : costello corporation manufactures a single product. the standard cost per unit of product is shown below.direct
The accounting supervisor of herfurth amp sons believes the : research the following questions and give authoritative support for your answer?1. the accounting supervisor of
If water is being pumped into the tank at 8 ft3min find the : a water tank in the shape of a circular cone has a base radius of 8 ft. and a height of 9 ft. and is supported is such
Ocean division currently earns 1081200 and has divisional : ocean division currently earns 1081200 and has divisional assets of 5.1 million. the division manager is considering
S : the diameter of a spindle in a small motor is supposed to be 5 millimeters with a st.dev. of 0.04 mm. if the spindle

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a production budget

They also have a policy of maintaining a raw material inventory at the end of each month equal to 20% of the pounds needed for the following month's production. There were 3,920 pounds of raw material on hand at Dec. 31, 2010, For the first quarter o..

  Problem regarding expected net income

What would expected net income be if the company experienced a 10 percent increase in fixed costs and 10 percent increase in sales volume?

  Centralized management of purchasing

The central stores fund of cook city provides centralized management of purchasing, storage,and issue of supplies for the entire city. For the following summarized transactions and events for the year ended june 30, provide the fund level entries ..

  Calculate the amount of accumulated depreciation

Calculate the amount of accumulated depreciation on the machine shown in the December 31, 2004balance sheet assuming the company uses the double-declining balance depreciation method. Donot use decimals in your answer.

  Green enterprises exchanged a used crane with an original

1.green enterprises exchanged a used crane with an original cost of 200000 and accumulated depreciation of 140000 for a

  Describe one researched accounting position

Describe one  researched accounting position

  Balcom corporation acquires a coal mine at a cost of

balcom corporation acquires a coal mine at a cost of 1500000. intangible development costs total 360000. after

  Effects of transactions and accounting equation

You are required to write a report to your boss to help her understand these terms trial balance, cash book, general journal, books of prime entry effects of transactions and accounting equation.

  Kepler corporation had 300000 shares of common stock

kepler corporation had 300000 shares of common stock outstanding during the year. kepler declared and paid cash

  Use of losses by shareholders

Monte and Allie each owns 50% of Raider Corporation, an S corporation. Both individuals actively participate in Raider's business. On January 1, Monte and Allie have adjusted bases for their Raider stock of $80,000 and $90,000 respectively. During..

  Which of the following is not true of the terms debit and

which of the following is not true of the terms debit and credit? they can be interpreted to mean left and right. they

  Which of the following is an example of a cost that varies

which of the following is an example of a cost that varies in total as the number of units produced changes?a. salary

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