Fletcher Compeny collected the fallowing dsts regerding production of ove of its

Question

Fletcher Compeny collected the fallowing dsts regerding production of ove of its products.Compute the veriebile overheed cost verience. Snp Co. produces scoroge crotes that require 29.0 meters of motenal at 5050 per meter and 035 direc labor hours S13.00 per hour. Overnead is applied at the rate of S14 per direcz labor hour. Whar is the total standard cost for one unt of product that would appear on a Darect 1abor standard (2 hrs. e $12.75r 25.50 pr finished unit Budgeted units ktusl finished units produced standard verisble rate (2 hrs.$14.3hr standard rixedon rete (SJJ6,eee/42,800 units) Actual cost of variable overhead costs incurred Actual cost of fixed overhead costs incunned 40,800 units S 28,68 per finished unit S .88 per unit 31,148,8ee 338,80e 4150 3305 0 45 S9.00 14,300 untavrable

Explanation / Answer

8 Variable overhead variance = 1140000-(40000*28.6)= 4000 Favorable Option 2 is correct 22 Standard cost = (29*0.5)+(0.35*13)+(0.35*14)= 23.95 Option 5 is correct

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