I am assigned a homework problem to do, but I am completelylost...I could really use some help please! On the wholething..
Here it is:
Bronfenbrenner Co. uses a standard cost system for its singleproduct in which variable overhead is applied on the basis ofdirect labor hours. The following information is given:
Standard costs per unit:
Raw materials (1.5 grams at $16.00 pergram).......................... $24.00
Direct labor (0.75 hours at $8 perhour)........................................ $6.00
Variable overhead (0.75 hours at $3 perhour)............................ $2.25
Actual experience for current year:
Unitsproduced..................................................................................22,400 units
Purchases of raw materials (21,000 grams at $17 per gram).$357,000
Raw materialsused.........................................................................33,400 grams
Direct labor (16,750 hours at $8 perhour)................................... $134,000
Variable overhead costincurred.....................................................$48,575
Compute the following variances:
a. Direct materials price variance
b. Direct materials quantity variance
c. Direct labor rate variance
d. Direct labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance
I am assigned a homework problem to do, but I am completelylost...I could really use some help please! On the wholething..
Here it is:
Bronfenbrenner Co. uses a standard cost system for its singleproduct in which variable overhead is applied on the basis ofdirect labor hours. The following information is given:
Standard costs per unit:
Raw materials (1.5 grams at $16.00 pergram).......................... $24.00
Direct labor (0.75 hours at $8 perhour)........................................ $6.00
Variable overhead (0.75 hours at $3 perhour)............................ $2.25
Actual experience for current year:
Unitsproduced..................................................................................22,400 units
Purchases of raw materials (21,000 grams at $17 per gram).$357,000
Raw materialsused.........................................................................33,400 grams
Direct labor (16,750 hours at $8 perhour)................................... $134,000
Variable overhead costincurred.....................................................$48,575
Compute the following variances:
a. Direct materials price variance
b. Direct materials quantity variance
c. Direct labor rate variance
d. Direct labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance
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Related questions
Hurren Corporation makes a product with the following standardcosts: |
| StandardQuantity or Hours | Standard Priceor Rate | Standard CostPer Unit | |
| Directmaterials | 9.10 grams | $7.00 pergram | $63.70 |
| Direct labor | 0.4 hours | $15.00 perhour | $6.00 |
| Variableoverhead | 0.4 hours | $7.00 perhour | $2.80 |
| The company reported thefollowing results concerning this product in June. |
| Originally budgetedoutput | 7,100 | units |
| Actual output | 7,200 | units |
| Raw materials usedin production | 40,700 | grams |
| Purchases of rawmaterials | 47,100 | grams |
| Actual directlabor-hours | 640 | hours |
| Actual cost of rawmaterials purchases | $262,440 | |
| Actual direct laborcost | $8,178 | |
| Actual variableoverhead cost | $3,144 |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased. |
| The labor rate variance for Juneis: |
$1,437 F
$1,422 F
$1,437 U
$1,422 U
| Hurren Corporation makes aproduct with the following standard costs: |
| StandardQuantity or Hours | Standard Priceor Rate | Standard CostPer Unit | |
| Directmaterials | 4.9 grams | $4.00 pergram | $19.60 |
| Direct labor | 0.7 hours | $14.00 perhour | $9.80 |
| Variableoverhead | 0.7 hours | $9.00 perhour | $6.30 |
| The company reported thefollowing results concerning this product in June. |
| Originally budgetedoutput | 6,300 | units |
| Actual output | 6,200 | units |
| Raw materials usedin production | 28,430 | grams |
| Actual directlabor-hours | 4,000 | hours |
| Purchases of rawmaterials | 32,300 | grams |
| Actual price of rawmaterials purchased | $4.10 | per gram |
| Actual direct laborrate | $14.90 | per hour |
| Actual variableoverhead rate | $8.70 | per hour |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased. |
| The variable overhead efficiencyvariance for June is: |
$2,958 F
$3,060 U
$2,958 U
$3,060 F
| Hurren Corporation makes aproduct with the following standard costs: |
| StandardQuantity or Hours | Standard Priceor Rate | Standard CostPer Unit | |
| Directmaterials | 4.8 grams | $7.00per gram | $33.60 |
| Direct labor | 0.8 hours | $13.00per hour | $10.40 |
| Variableoverhead | 0.8 hours | $8.00per hour | $6.40 |
| The company reported thefollowing results concerning this product in June. |
| Originally budgetedoutput | 6,200 | units |
| Actual output | 6,100 | units |
| Raw materials usedin production | 28,420 | grams |
| Actual directlabor-hours | 4,800 | hours |
| Purchases of rawmaterials | 32,200 | grams |
| Actual price of rawmaterials purchased | $7.10 | per gram |
| Actual direct laborrate | $13.90 | per hour |
| Actual variableoverhead rate | $7.70 | per hour |
The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased. |
| The variable overhead ratevariance for June is: |
$1,464 U
$1,464 F
$1,440 F
$1,440 U
Franklin Glass Works uses a standard cost system in whichmanufacturing overhead is applied on the basis of standard directlabor-hours. Each unit requires five standard hours of direct laborfor completion. The denominator activity for the year was based onbudgeted production of 170,000 units. Total overhead was budgetedat $2,250,000 for the year, and the fixed manufacturing overheadrate was $2.50 per direct labor-hour. The actual data pertaining tothe manufacturing overhead for the year are presentedbelow: |
| Actual production | 168,000 | units |
| Actual direct labor-hours | 410,000 | direct labor-hours |
| Actual variable manufacturing overhead | $322,000 | |
| Actual fixed manufacturing overhead | $572,000 |
Franklin'sfixed manufacturing overhead volume variance for the yearis:
| $25,000 unfavorable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $8,500 favorable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $313,500 favorable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$47,500 unfavorable
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