Pardoe, Inc., manufactures a product called Product A. The company uses a standa
ID: 2544671 • Letter: P
Question
Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Quantity 1.5 pounds 0.6 hours 0.6 hours 0.6 hours Standard Cost $4.50 3.60 75 105 9.90 Standard Price Direct Materials Direct labor Variable overhead Fixed overhead or Rate S3 per pound $6 per hour $1.25 per hour $1.75 per hour During March 2016, the company produced 3,000 units and recorded the following: I. A total of 8,000 pounds of material were purchased at a cost of $23,000. II. There was no beginning raw materials on hand to start the month; at the end of the III. IV. month, 2,000 pounds of material remained in the warehouse unused. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. Variable overhead is assigned to Product A on the basis of direct labor-hours. Actual variable overhead costs during March totaled $1,800 and actual fixed overhead totaled $4,000. Budgeted fixed cost for March was $3,360. V.Explanation / Answer
Q39. Answer is a $400 F Explanation: Std labour hour per unit: 0.6 hour Actual output: 3000 units Std labour hours allowed:(3000*0.6): 1800 hours Actual hours : 1600 hours Actual rate per hour: $ 6.50 per hour Std rate per hour: $6 per hour Total labour variance: Sstd hours*Std rate - Actual hours*Actual rate 1800*6 - 1600*6.5 = $ 400 Favorable Q41. Answer is c. $250 F Explanation: Std rate per hour: $ 1.25 per hour Variable overheads efficiency: Std OH rate per hour (Std hours -Actual hours) Variable OH efficiency variance: 1.25 (1800-1600)= $ 250 fav Q43. Answer is b. 210 U Explanation: Std fixed OH for actual output: 1800 hours @1.75 = $3150 Budgeted fixed OH: $ 3360 Fixed OH volume Variance: Std Fixed OH for actual output - Budgeted Fixed cost 3150 -3360 = $210 Unfav Q45. Answer is a. 400 U Explanation: Total Std Oh for actual output: 1800 hours @ 3: $ 5400 Actual OH incurred: $ 1800+4000: $ 5800 One way overhead variance: Std OH for actual output - actual Oh $ 5400 - 5800 = $ 400 U
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.