Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. The predetermined
Posted: Sun Jul 03, 2022 4:14 pm
Rogen Corporation manufactures a single product. The standardcost per unit of product is shown below.
The predetermined manufacturing overhead rate is $12.00 perdirect labor hour ($24.00 รท 2.0). It was computed from amaster manufacturing overhead budget based on normal productionof 11,200 direct labor hours (5,600 units) for themonth. The master budget showed total variable costs of$72,800 ($6.50 per hour) and total fixed overhead costsof $61,600 ($5.50 per hour). Actual costs for October inproducing 4,000 units were as follows.
The purchasing department buys the quantities of raw materials thatare expected to be used in production each month. Raw materialsinventories, therefore, can be ignored.(a)Compute all of the materials and labor variances.
(b)Compute the total overhead variance.
The predetermined manufacturing overhead rate is $12.00 perdirect labor hour ($24.00 รท 2.0). It was computed from amaster manufacturing overhead budget based on normal productionof 11,200 direct labor hours (5,600 units) for themonth. The master budget showed total variable costs of$72,800 ($6.50 per hour) and total fixed overhead costsof $61,600 ($5.50 per hour). Actual costs for October inproducing 4,000 units were as follows.
The purchasing department buys the quantities of raw materials thatare expected to be used in production each month. Raw materialsinventories, therefore, can be ignored.(a)Compute all of the materials and labor variances.
(b)Compute the total overhead variance.