The purchasing department buys the quantities of raw

Assignment Help Accounting Basics

Reference no: EM13572656

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

Direct materials-2 pound plastic at $7 per pound		$ 14.00
Direct labor-1.00 hours at $11.00 per hour		11.00
Variable manufacturing overhead		6.50
Fixed manufacturing overhead		7.50
Total standard cost per unit		$39.00

The predetermined manufacturing overhead rate is $14 per direct labor hour ($14 ÷ 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,800 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $37,700 ($6.50 per hour) and total fixed overhead costs of $43,500 ($7.50 per hour). Actual costs for October in producing 3,100 units were as follows.

Direct materials (6,310 pounds)		$ 45,937
Direct labor (2,990 hours)		33,877
Variable overhead		32,203
Fixed overhead		13,217
Total manufacturing costs		$125,234

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.

Total materials variance	$	UnfavorableFavorableNeither favorable nor unfavorable
Materials price variance	$	Neither favorable nor unfavorableUnfavorableFavorable
Materials quantity variance	$	UnfavorableFavorableNeither favorable nor unfavorable
Total labor variance	$	UnfavorableNeither favorable nor unfavorableFavorable
Labor price variance	$	UnfavorableNeither favorable nor unfavorableFavorable
Labor quantity variance	$	FavorableUnfavorableNeither favorable nor unfavorable

(b) Compute the total overhead variance.

Total overhead variance

UnfavorableFavorableNeither favorable nor unfavorable

Reference no: EM13572656

Questions Cloud

If variable cost of goods sold totaled 80000 for the year : if variable cost of goods sold totaled 80000 for the year 16000 units at 5.00 each and the planned variable cost of

If the company pursues the investment opportunity and : westerville company reported the following results from last years

Order up inc provides order fulfillment services for dotcom : order up inc. provides order fulfillment services for dot.com merchants. the company maintains warehouses that stock

Briefly summarise the sentence that you chose for the : visit view and explore the following web resourcehttpwww.directgov.coionline.tvjudgeforyourselfchoose one of the

The purchasing department buys the quantities of raw : rondello corporation manufactures a single product. the standard cost per unit of product is shown below.direct

Topper toys has developed a new toy called the brainbuster : topper toys has developed a new toy called the brainbuster. the company has a standard cost system to help control

Assume that you have 100000 invested in a stock whose beta : assume that you have 100000 invested in a stock whose beta is .85 200000 invested in a stock whose beta is 1.05 and

Match each of the following types of evaluation with one of : match each of the following types of evaluation with one of the listed users of accounting information.1. trying to

Oneida associates is a real estate company operating in the : oneida associates is a real estate company operating in the finger lakes region of central new york. its leasing

User Account

All Pages