The rio company manufactures beach umbrellas and uses a

Assignment Help Accounting Basics

Reference no: EM13599120

The Rio Company manufactures beach umbrellas and uses a standard cost system. An analysis of costs shows the direct material used in one umbrella costs $10.20. One hour of direct labor costs $12 with standard production being two umbrellas per hour. Variable manufacturing overhead is estimated at $4.50 per hour, and fixed overhead is set as $72,000 per year. Normal operating capacity is 120,000 umbrellas per year.

1.Determine the standard variable cost per umbrella based on the above information.

During the year 110,000 umbrellas were produced at the following costs:
Materials (114,000 units @ $10.50) $ 1,197,000
Labor (62,000 hours @ $11.80) 731,600
Variable overhead 285,200
Fixed overhead 72,000 (don't need for these calcs)

2.Calculate the direct materials cost variances, the direct labor cost variances, and the variable overhead cost variances.

Reference no: EM13599120

Questions Cloud

Sardel company reported net income of 29975 for 2010 during : sardel company reported net income of 29975 for 2010. during all of 2010 the company had 1000 shares of 10 100 par

What ethical concern do you have regarding the method used : what ethical concern do you have regarding the method used to gather information about space utilization? what

Would you advise mr duncan to open the car wash show : complete the following exercise using the excel template found in your online classroom and respond to at least two of

Given that there at a minimum two ways to calculate the : given that there at a minimum two ways to calculate the time value of money - present value and future value would it

The rio company manufactures beach umbrellas and uses a : the rio company manufactures beach umbrellas and uses a standard cost system. an analysis of costs shows the direct

One of your clients has asked your advice on the best way : one of your clients has asked your advice on the best way to accept payment on a sale. the client has been offered

Open the following t-accounts with their july 1 balances : the following ransactions occured for london eningeering july 2 paid utilities expense for 400 5 purchased equipment on

Compute the amount wainwright should report as net cash : wainwright corporation had the following activities1- sale of land 1800002- purchase of inventory 8450003- purchase of

The rah manufacturing company has two service departments : the rah manufacturing company has two service departments maintenance and accounting. the maintenance departments cost

User Account

All Pages