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Sanderson Company has the following production data for March: no beginning work in process, units started and completed 28,030, and ending work in process 3,890 units that are 100% complete for materials and 40% complete for conversion costs. Sanderson uses the FIFO method to compute equivalent units. If unit materials cost is $6 and unit conversion cost is $12.
Determine the costs to be assigned to the units transferred out and the units in ending work in process. The total costs to be assigned are $546,552.
Transferred out: ???
Ending work in process : ???
Describe briefly the possible causes of: (i) the material usage variance, (ii) the labour rate variance, (iii) the sales volume profit variance.
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