Vaughn Corporation manufactures a single product. The standard cost per unit of product is shown below. The predetermine
Posted: Wed Apr 27, 2022 11:23 am
Vaughn Corporation manufactures a single product. The
standard cost per unit of product is shown below.
The predetermined manufacturing overhead rate is $14 per
direct labor hour ($14.00 รท 1.00). It was computed from a
master manufacturing overhead budget based on normal production
of 5,300 direct labor hours (5,300 units) for the
month. The master budget showed total variable costs of
$37,100 ($7.00 per hour) and total fixed overhead costs
of $37,100 ($7.00 per hour). Actual costs for October in
producing 4,600 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.
(b)
Compute the total overhead variance.
standard cost per unit of product is shown below.
The predetermined manufacturing overhead rate is $14 per
direct labor hour ($14.00 รท 1.00). It was computed from a
master manufacturing overhead budget based on normal production
of 5,300 direct labor hours (5,300 units) for the
month. The master budget showed total variable costs of
$37,100 ($7.00 per hour) and total fixed overhead costs
of $37,100 ($7.00 per hour). Actual costs for October in
producing 4,600 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.
(b)
Compute the total overhead variance.