Rogen Corporation manufactures a single product. The standard cost per unit of p

Question

Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

The predetermined manufacturing overhead rate is $16 per direct labor hour ($32.00 ÷ 2.00). It was computed from a master manufacturing overhead budget based on normal production of 12,000 direct labor hours (6,000 units) for the month. The master budget showed total variable costs of $84,000 ($7.00 per hour) and total fixed overhead costs of $108,000 ($9.00 per hour). Actual costs for October in producing 4,100 units were as follows.

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.

(a)

Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

(b)

Compute the total overhead variance.

Direct materials—1 pound plastic at $6 per pound $ 6.00 Direct labor—2.00 hours at $11.15 per hour 22.30 Variable manufacturing overhead 14.00 Fixed manufacturing overhead 18.00 Total standard cost per unit $60.30

Explanation / Answer

Rogen Corporation A Material Price Variance Actual Price 6.2 =Actual Cost/Actual Pounds Consumed Standard Price 6 Variance 0.2 Actual quantity 4250 Direct Material Price Variance 850 Unfavourable Quantity Variance Actual Quantity 4250 Standard Quantity 4100 Variane 150 Standard Price 6 Direct Material Quantity Variance 900 Unfavourable Total Direct Material Cost Variance 1750 Unfavourable B Labor Rate Variance Actual Rate per hour 11.45006 =Actual Labor cost/Actual Labor Hours Standard rate per hour 11.15 Variance 0.300062 Actual hours 8070 Direct Labor rate variance 2421.5 Unfavourable Time Variance Actual Direct labor hours 8070 Standard Direct Labor hours 8200 Variance 130 Standard rate per hour 11.15 Direct Labor Time Variance 1449.5 Favourale Total Direct Labour Cost variance 972 Unfavourable C Factory Overhead Variable overhead Efficiency Variance Standard Hours 8200 Actuals Hours 8070 Variance 130 Standard rate 7 Variable Overhead efficiency Variance 910 Favourable Expenditure Variance Standard Rate 7 Actual rate 12.35564 =Actual Overhead/Actual Hours Variance 5.355638 Actual Hours 8070 Variable Overhead expenditure Variance 43220 Unfavourable Fixed Overhead Volume Variance Actual Output 4100 Standard rate 18 Total 73800 Less : Budgted Fixed overhead 108000 Variable Overhead efficiency Variance 34200 Favourable Expenditure Variance Budgted Fixed overhead 108000 Actual Fixed overhead 33590 Variable Overhead expenditure Variance 74410 Favourable Total Factory Overhead variance 66300 Favourable We appreciate rating of our answers Thank You

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.