Maurice Tutor

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Category > Management Posted 08 Jan 2018 My Price 8.00

Wangsgard Manufacturing

Materials, Labor, and Overhead Variances

Wangsgard Manufacturing has the following standard cost sheet for one of its products:

 

Direct materials (2 ft. @ $5)

$10

Direct labor (0.5 hr. @ $10)

5

Fixed overhead (0.5 hr. @ $2)*

1

Variable overhead (0.5 hr. @ $4)

    2

Standard unit cost

$18

*Rate based on expected activity of 2,500 hours.

 

During the most recent year, the following actual results were recorded:

 

Production

Direct materials (11,750 ft. purchased and used)

6,000 units

$ 61,100

Direct labor (2,900 hrs.)

29,580

Fixed overhead

6,000

Variable overhead

10,500

 

Required

Compute the following variances:

1.    Materials price and usage variances.

2.    Labor rate and efficiency variances.

3.    Variable overhead spending and efficiency variances.

4.    Fixed overhead spending and volume variances.

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 08 Jan 2018 07:01 PM My Price 8.00

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