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Finder File Edit View Go Window Help Basic Financial Calculator Download rb...nts-RARBG Facebook Problem 23-1A Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. 7.00 16.65 9.00 9.00 $41.65 Direct materials-1 pound plastic at $7 per pound Direct labor-1.50 hours at $11.10 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00+ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 9,000 direct labor hours (6,000 units) for the month. The master budget showed total variable costs of $54,000 ($6.00 per hour) and total fixed overhead costs of $54,000 ($6.00 per hour). Actual costs for October in producing 3,500 units were as follows. 25,986 59,110 44,098 21,202 $150,396 Direct materials (3,660 pounds) Direct labor (5,140 hours) Variable overhead Fixed overhead Total manufacturing costs 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. Compute all of the materials and labor variances. (Round answers to O decimal places, e.g. 125.) Total materials variance Materials price variance s Materials quantity variance s Total labor variance Labor price variance Labor quantity variance Compute the total overhead variance. Total overhead variance Click if you would like to Show Work for this question: Open Show Work 22166 JUN

Explanation / Answer

Material Std materilal qty required per unit: 1 pound Actual output: 3500 units Std qty allowed: 3500 pounds Std price per pound: 7 per pound Actual qty: 3660 pounds Actual Price (25986/3660): 7.10 Total Material variance: Styd qty*Std price- Actual Qty*Actual price 3500 *7 - 3660*7.10 = 1486 Unfav Material price: Actual qty (Std price-Actual price) 3660 (7-7.10 ) = 366 Unfav Material Qty variance: Std pricec(Std qty-Actyal qty) 7.00 ( 3500-3660) = 1120 Unfav Laboour: Std labour hour required per unit: 1.50 Std labouor hours allowed (3500*1.50): 5250 hours Actual hours: 5140 hours Actual rate per hour: (59110/5140): 11.50 perrhour Std rate per hour: 11.10 per hour Labour cost variance: Std hours*Std rate-Actual rate*Actual hours 5250*11.1 - 5140*11.50 = 835 unfav Labour rate variance: Actual hours (Std rate-Actual rate) 5140 ( 11.10-11.50)= 2056 Unfav Labour efficiency variance: Std rate (Std hours-Actual hours) 11.10 (5250-5140)= 1221 Fav Std OH rate per hour (18/1.50): $ 12 per hour Total OH variance: Std hours*Std OH rate -Actual OH incurred 5250*12 - (44098+21202)= 2300 Unfav

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