Reference no: EM132530513

Question - The big book company build wooden bookshelf wall units. the company standard costs are:

Wood 25 pounds at 6.40 per pound

Trim 8 pounds at 10 per pound

Direct labor 5 hours at 12 per hour

Variable overhead 30 per unit

Fixed overhead 130000 per period, applied at the rate of 20 per unit

A recent months transaction were: 160000 pounds of wood were purchased at 6.50 per pound: 50000 pounds of trim were purchased at 9.60 per pound. 155000 pounds of wood were issued to production; 48500 pounds of trim were issued to production. Direct labor incurred was 31000 hours at an average cost of 11.50 per hour. Overhead costs were 303000 of which 181000 were variable. Six thousand units were produced during the month.

Required =

1. What was the total actual cost of wood purchased?

2. What was the total standard cost of wood purchased?

3. What was the wood price variance?

4. What was the total actual cost of trim purchased?

5. What was the trim variance?

6. What was the trim efficiency variance?

7. What was the direct labor price variance?

8. What was the direct labor efficiency variance?

9. Using the two-way variance analysis for combined fixed and variable overhead, what was big books overhead spending variance?

10. Using the two-way variance analysis for combined fixed and variable overhead, what was big books overhead production volume variance?