Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
Direct materialsâ1 pound plastic at $6 per pound $ 6.00 Direct laborâ2.00 hours at $11.15 per hour 22.30 Variable manufacturing overhead 14.00 Fixed manufacturing overhead 18.00 Total standard cost per unit $60.30
The predetermined manufacturing overhead rate is $16 per direct labor hour ($32.00 ÷ 2.00). It was computed from a master manufacturing overhead budget based on normal production of 12,000 direct labor hours (6,000 units) for the month. The master budget showed total variable costs of $84,000 ($7.00 per hour) and total fixed overhead costs of $108,000 ($9.00 per hour). Actual costs for October in producing 4,100 units were as follows.
Direct materials (4,250 pounds) $ 26,350 Direct labor (8,070 hours) 92,402 Variable overhead 99,710 Fixed overhead 33,590 Total manufacturing costs $252,052
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
(a)
Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)
(b)
Compute the total overhead variance.
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
| Direct materialsâ1 pound plastic at $6 per pound | $ 6.00 | |
| Direct laborâ2.00 hours at $11.15 per hour | 22.30 | |
| Variable manufacturing overhead | 14.00 | |
| Fixed manufacturing overhead | 18.00 | |
| Total standard cost per unit | $60.30 |
The predetermined manufacturing overhead rate is $16 per direct labor hour ($32.00 ÷ 2.00). It was computed from a master manufacturing overhead budget based on normal production of 12,000 direct labor hours (6,000 units) for the month. The master budget showed total variable costs of $84,000 ($7.00 per hour) and total fixed overhead costs of $108,000 ($9.00 per hour). Actual costs for October in producing 4,100 units were as follows.
| Direct materials (4,250 pounds) | $ 26,350 | |
| Direct labor (8,070 hours) | 92,402 | |
| Variable overhead | 99,710 | |
| Fixed overhead | 33,590 | |
| Total manufacturing costs | $252,052 |
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.
(a)
Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)
(b)
Compute the total overhead variance.
Related questions
Costello Corporation manufactures a single product. The standardcost per unit of product is shown below.
Direct materialsâ2 pound plastic at $6.89 per pound | $ 13.78 | |
Direct laborâ2.00 hours at $11.00 per hour | 22.00 | |
Variable manufacturing overhead | 14.00 | |
Fixed manufacturing overhead | 10.00 | |
Total standard cost per unit | $59.78 |
The predetermined manufacturing overhead rate is $12 per directlabor hour ($24.00 ÷ 2.00). It was computed from a mastermanufacturing overhead budget based on normal production of 11,800direct labor hours (5,900 units) for the month. The master budgetshowed total variable costs of $82,600 ($7.00 per hour) and totalfixed overhead costs of $59,000 ($5.00 per hour). Actual costs forOctober in producing 3,500 units were as follows.
Direct materials (7,180 pounds) | $ 50,475 | |
Direct labor (6,860 hours) | 77,381 | |
Variable overhead | 61,738 | |
Fixed overhead | 24,472 | |
Total manufacturing costs | $214,066 |
The purchasing department buys the quantities of raw materials thatare expected to be used in production each month. Raw materialsinventories, therefore, can be ignored.
(a) Compute all of the materials and laborvariances. (Round answers to 0 decimal places, e.g.125.)
Total materials variance | $ | UnfavorableFavorableNeither favorable nor unfavorable | ||
Materials price variance | $ | Neither favorable nor unfavorableFavorableUnfavorable | ||
Materials quantity variance | $ | FavorableUnfavorableNeither favorable nor unfavorable | ||
Total labor variance | $ | UnfavorableFavorableNeither favorable nor unfavorable | ||
Labor price variance | $ | UnfavorableNeither favorable nor unfavorableFavorable | ||
Labor quantity variance | $ | FavorableUnfavorableNeither favorable nor unfavorable |
(b) Compute the total overhead variance.
Total overhead variance | $ | FavorableNeither favorable nor unfavorableUnfavorable |
