User Account

All Pages

variance analysis , Basic Statistics

Assignment Help:
Terry Co. manufactures a commercial solvent that is used for industrial maintenance. This solvent is sold by the drum and generally has a stable selling price. Due to a decrease in demand for this product, Terry produced and sold 60,000 drums in December. The following information is available regarding Terry''s operations for December:

Standard costs per drum of product manufactured were as follows:

Materials
10 gallons of raw materials $20
1 empty drum $1
Total Materials Costs $21
Direct labor (1 hour) $7
Fixed factory overhead (per direct
labor hour) $4
Variable factory overhead (per
direct labor hour) $6

Costs incurred during December were as follows:
Raw materials: 600,000 gallons were purchased at a cost of $1,150,000
700,000 gallons were used
Empty drums: 85,000 drums were purchased at a cost of $85,000
60,000 drums were used
Direct Labor: 65,000 hours were worked at a cost of $470,000
Factory overhead:
Depreciation of building and machinery: $230,000
Supervision and indirect labor: $360,000
Other factory overhead; $76,500
Total factory overhead: $666,500

The fixed overhead budget for the December level of production was $275,000
Normal capacity is $68,750 direct labor hours

Prepare a schedule computing the following variances for December:

(1) Materials price variance (computed at the time of purchase)
(2) Materials usage variance (quantity)
(3) Labor rate variance
(4) Labor usuage (efficiency) variance
(5) Factory overhead,using the three-way method

Indicate whether each variance is favorable or unfavorable

Related Discussions:- variance analysis

Reference number 20110907, I am not able to log in again to retrieve my ass...

I am not able to log in again to retrieve my assignment that I paid for

Regression, Sales from a leading motor dealership were monitored over the p...

Sales from a leading motor dealership were monitored over the past four years. The sales figures are presented in the accompanying table. Year Quarter 1 Quarter 2 Quarter 3 Quarter

#title.- historigram, #question.differentiate between historigram and histo...

#question.differentiate between historigram and histogram.

Prepare journal entries, Quick Company acquired a piece of equipment in Yea...

Quick Company acquired a piece of equipment in Year 1 st cost $100,000. The equipment has a 10-year estimated life, zero salvage value and a depreciation of a straight line basis.

Definition of mode, what is definition of Mode?

what is definition of Mode?

Characteristics , Mention the characteristics of Statistics. Explain any tw...

Mention the characteristics of Statistics. Explain any two applications of Statistics

Variance analysis, Variance analysis In spending budget (or control sales ...

Variance analysis In spending budget (or control sales in general), a change is the change between an allocated, thought out or conventional quantity and the actual quantity incur

Statistical hypotheses - anova, Your company operates a machine shop, and, ...

Your company operates a machine shop, and, having heard you had experience in statistics and design of experiments, consulted you for your opinion on an experiment they want to run

Online homework, I need help with online accounts homework.

I need help with online accounts homework.

How can do entry, mr.sunil join as a new business partner and borrowed rs. ...

mr.sunil join as a new business partner and borrowed rs. 850000 from ansul investment co. and depoisted the money into a uti bank account on 1-4-2006.

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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