Arnold Company produces a single product. Its standard cost card follows: Direct Materials:...
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Accounting
Arnold Company produces a single product. Its standard cost card follows:
Direct Materials: 5 pounds at $10 per pound
Direct Labor : 3 hours at $12 per hour
Variable overhead: 3 hours at $20 per hour
The following additional information is available for the year just completed:
The company manufactured 8,000 units of product during the year
A total of 45,000 pounds of material was purchased and used at a total cost of $405,000
The company worked 25,000 direct labor hours during the year at a total cost of $275,000
Overhead is applied to products on the basis of direct labor hours. Total variable overhead was $525,000
Compute the following variances for the year.
a. Direct materials price:
b. Direct materials quantity:
c. Direct labor rate:
d. Direct labor efficiency:
e. Variable overhead spending:
f. Variable overhead efficiency:
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