Arrow Enterprises uses a standard costing system. The standard cost sheet for pr

Question

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 Variable factory overhead: 8 hours @ $7.00 56 Fixed factory overhead: 8 hours @ 2.5 20 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 6,500 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.

Explanation / Answer

http://www.scribd.com/doc/114535232/ACC-205-Week-4-Chapter-7-Problem-5 http://www.coursehero.com/tutors-problems/Accounting/8412308-P26-B3-Straightforward-variance-analysis-LO-5-Arrow-Enterprises/ http://acc206ashford12.blogspot.in/2012/11/acc-206-week-4-assignment-chapter-six.html http://www.slideshare.net/acc206/acc-206-week-4-assignment-chapter-six-and-seven-problems

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