Reference no: EM132527281

Problem 1: The following data pertains to the month of October for ElmCo. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs. of Direct Materials at a cost of $7.00 per lb.; 0.20 hours of Direct Labor at $18.00 per hour; and Variable Overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. Actual production of P90 for October was 4,600 units. In October the production of P90 totaled 4,600 units, using 828 direct labor hours costing a total of $15,732. Determine the direct labor rate variance. (Negative numbers indicate a favorable variance.)

Problem 2: Rocket Plating Company plans to manufacture 125,000 units of its GidgetSpinners during the year. Two types of materials are used to make GidgetSpinners: four ounces of Material A, costing $0.30 per ounce and two ounces of Material B, costing $0.40. 30 GidgetSpinners require 1 hour of direct labor time budgeted at the rate of $16.00 an hour. The variable manufacturing overhead rate is applied at $6.00 per direct labor hour and the fixed manufacturing overhead for the year is estimated to be $150,000. What is the budgeted cost of goods manufactured for the upcoming year?

Problem 3: The following data pertains to the month of October for ElmCo. when production was budgeted to be 5,000 units of P90. Fixed manufacturing overhead traceable to the production of P90 is budgeted to be $15,000 for the month and is assigned on the basis of the number of units manufactured using a pre-determined rate. Actual production of P90 for October was 4,600 units and actual Fixed manufacturing overhead costs were $14,650. Determine the fixed overhead volume variance. (Negative numbers indicate a favorable variance.)