Peaceful corporation manufactures figurines based on the

Assignment Help Accounting Basics

Reference no: EM13578401

Peaceful Corporation manufactures figurines based on the following information.

Standard costs	$20
Materials (4 ounces at $5)	$8
Direct labor (1 hour per unit)	$4
Variable overhead (based on direct labor hours)
Fixed overhead budget		$19,000
Actual results and costs
Materials purchased
Units	9,000
Cost	$39,600
Materials used in production
Finished product units	2,000
Raw material (ounces)	8,200
Direct labor hours	2,000
Direct labor cost	$20,000
Variable overhead costs	$5,980
Fixed overhead costs	$19,500

Required:

Prepare a performance report for Peaceful using the following headings.
1. Actual Production Costs
2. Flexible Budget Costs
3. Flexible Budget Variances
Compute the following variances (show calculations).
1. Materials usage variance
2. Labor rate variance
3. Labor efficiency variance
4. Variable overhead spending variance
5. Variable overhead efficiency variance
6. Fixed overhead budget variance
Give one possible explanation for each of the six variances computed in part b.

Reference no: EM13578401

Questions Cloud

What is the probability the student will be admitted for : high school seniors with strong academic records apply to the nations most selective colleges in greater numbers each

Bond corporation issues 5000 10-year 8 1000 bonds dated : bond corporation issues 5000 10-year 8 1000 bonds dated january 1 2014 at 103. the journal entry to record the issuance

Diston company uses the weighted-average method in its : diston company uses the weighted-average method in its process costing system. the first processing department the

Describe the advantages and disadvantages of a standard : 1. define a standard cost and explain what constitutes the components of a standard cost.2. describe the advantages and

Peaceful corporation manufactures figurines based on the : peaceful corporation manufactures figurines based on the following information.standard costs20materials 4 ounces at

Helene and pauline are twin sisters who live in louisiana : helene and pauline are twin sisters who live in louisiana and mississippi respectively helene is married to frank and

Forty sales people were randomly selected their mean : a pharmaceutical company wanted to estimate the population mean of monthly sales for their 250 sales people. forty

For a randomly selected female estimate the probability of : the national sporting goods association conducted a survey of persons 7 years of age or older about participation in

Geoff incurred 900000 of mining and exploration : geoff incurred 900000 of mining and exploration expenditures. he elects to deduct the expenditures as quickly as the

User Account

All Pages