Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Aug 2017 My Price 9.00

Krayler Company had

At the beginning of 2008, Krayler Company had the following standard cost sheet for one of its chemical products:

Direct materials (6 lbs. @ $6.40)                     $38.40

Direct labor (1.8 hrs. @ $18.00)                     32.40

Fixed overhead (1.8 hrs. @ $8.00)                   14.40

Variable overhead (1.8 hrs. @ $1.50)                           2.70 Standard cost per unit                                        $87.90

Krayler computes its overhead rates using practical volume, which is 288,000 units. The actual results for 2008 are:

a.      Units produced: 280,000

b.      Materials purchased: 1,684,700 pounds at $6.60

c.       Materials used: 1,684,000 pounds

d.      Direct labor: 515,000 hours at $18.10

e.       Fixed overhead: $4,140,200

f.       Variable overhead: $872,000

 

Required

1.    Compute price and usage variances for materials.

2.    Compute the labor rate and labor efficiency variances.

3.    Compute the fixed overhead spending and volume variances.

4.    Compute the variable overhead spending and efficiency variances.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Aug 2017 10:08 PM My Price 9.00

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