User Account

All Pages

variance analysis , Basic Statistics

Assignment Help:
Terry Co. manufactures a commercial solvent that is used for industrial maintenance. This solvent is sold by the drum and generally has a stable selling price. Due to a decrease in demand for this product, Terry produced and sold 60,000 drums in December. The following information is available regarding Terry''s operations for December:

Standard costs per drum of product manufactured were as follows:

Materials
10 gallons of raw materials $20
1 empty drum $1
Total Materials Costs $21
Direct labor (1 hour) $7
Fixed factory overhead (per direct
labor hour) $4
Variable factory overhead (per
direct labor hour) $6

Costs incurred during December were as follows:
Raw materials: 600,000 gallons were purchased at a cost of $1,150,000
700,000 gallons were used
Empty drums: 85,000 drums were purchased at a cost of $85,000
60,000 drums were used
Direct Labor: 65,000 hours were worked at a cost of $470,000
Factory overhead:
Depreciation of building and machinery: $230,000
Supervision and indirect labor: $360,000
Other factory overhead; $76,500
Total factory overhead: $666,500

The fixed overhead budget for the December level of production was $275,000
Normal capacity is $68,750 direct labor hours

Prepare a schedule computing the following variances for December:

(1) Materials price variance (computed at the time of purchase)
(2) Materials usage variance (quantity)
(3) Labor rate variance
(4) Labor usuage (efficiency) variance
(5) Factory overhead,using the three-way method

Indicate whether each variance is favorable or unfavorable

Related Discussions:- variance analysis

Capital projects funds, Capital projects funds Capital projects funds are ...

Capital projects funds Capital projects funds are used to account for the acquisition &/or structure of major capital facilities [other than those financed by proprietary funds &

Costing for labour, ways or techniques for labour control policy

ways or techniques for labour control policy

Characteristic, 1. Mention the characteristics of Statistics. Explain any t...

1. Mention the characteristics of Statistics. Explain any two applications of Statistics.

How to calculate midrange in statistics?, Midrange The midrange is the ...

Midrange The midrange is the measure of the center that is the value midway between the highest and the lowest values in the original data set. It is found by adding the highes

6.2, comulativefrequencydistribution

comulativefrequencydistribution

Semi average trend values, Year : 2008 2009 2010 2011 2012 2013 sale : 111 ...

Year : 2008 2009 2010 2011 2012 2013 sale : 111 120 114 123 117 126

Probability.., theorems of probability ..

theorems of probability ..

Time series, what are the characteristics

what are the characteristics

Find a p-value from a t-test, A random sample of 321 New Jersey and 77 Penn...

A random sample of 321 New Jersey and 77 Pennsylvania fast-food restaurants was selected from those fast-food restaurants in this study.  The restaurants were categorised into two

Business tax accounting , #questLester rents his vacation home for 6 months...

#questLester rents his vacation home for 6 months and lives in the home during the other 6 months of 2010. The gross rental income from the home is $4,500. For the entire year, rea

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd