Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
Related questions
Question
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. Themaster budget showed total variable costs of $53,625 ($6.50 per hour) and total fixed overhead costs of $61,875 ($7.50 per hour). Actual costs for October in producing 4,200 units were as follows.
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.
(b)
Compute the total overhead variance.
Direct materials—1 pound plastic at $8.00 per pound | $ 8.00 | |
Direct labor—1.5 hours at $11.90 per hour | 17.85 | |
Variable manufacturing |
9.75 | |
Fixed manufacturing overhead | 11.25 | |
Total standard cost per unit | $46.85 |
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. The
Direct materials (4,380 pounds) | $ 35,478 | |
Direct labor (6,190 hours) | 75,518 | |
Variable overhead | 67,030 | |
Fixed overhead | 23,170 | |
Total |
$201,196 |
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.
Total materials variance | $enter a dollar amount | select an option | ||
---|---|---|---|---|
Materials price variance | $enter a dollar amount | select an option | ||
Materials quantity variance | $enter a dollar amount | select an option | ||
Total labor variance | $enter a dollar amount | select an option | ||
Labor price variance | $enter a dollar amount | select an option | ||
Labor quantity variance | $enter a dollar amount | select an option |
(b)
Compute the total overhead variance.
Total overhead variance | $enter the total overhead variance in dollars | select an option |
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. The master budget showed total variable costs of $53,625 ($6.50 per hour) and total fixed overhead costs of $61,875 ($7.50 per hour). Actual costs for October in producing 4,200 units were as follows.
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.
(b)
Compute the total overhead variance.
Direct materials—1 pound plastic at $8.00 per pound | $ 8.00 | |
Direct labor—1.5 hours at $11.90 per hour | 17.85 | |
Variable manufacturing overhead | 9.75 | |
Fixed manufacturing overhead | 11.25 | |
Total standard cost per unit | $46.85 |
The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($21.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 8,250 direct labor hours (5,500 units) for the month. The master budget showed total variable costs of $53,625 ($6.50 per hour) and total fixed overhead costs of $61,875 ($7.50 per hour). Actual costs for October in producing 4,200 units were as follows.
Direct materials (4,380 pounds) | $ 35,478 | |
Direct labor (6,190 hours) | 75,518 | |
Variable overhead | 67,030 | |
Fixed overhead | 23,170 | |
Total manufacturing costs | $201,196 |
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.
Total materials variance | $enter a dollar amount | select an option | ||
---|---|---|---|---|
Materials price variance | $enter a dollar amount | select an option | ||
Materials quantity variance | $enter a dollar amount | select an option | ||
Total labor variance | $enter a dollar amount | select an option | ||
Labor price variance | $enter a dollar amount | select an option | ||
Labor quantity variance | $enter a dollar amount | select an option |
(b)
Compute the total overhead variance.
Total overhead variance | $enter the total overhead variance in dollars | select an option |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub