60.1K

Verified Solution

Link Copied!

At the beginning of 2021, ABC Manufacturing Ltd, adopted the following standards for its direct material costs: Input Cost per Output Unit Direct labour 5 hours at $18 per hour $ 90 During the most recent month 2,600 output units were produced with 14,100 hours used at a cost of $17.5 per hour. What were the direct labour price variance and quantity variance, respectively? O a. $19,248 F and $19,272 U b. $7,050 F and $19,800 U OC $19,248 U and $19,200 U o d. $7,050 U and $19.800 F. ABC Company incurs the following costs in producing 25,000 units of product: Direct materials $175,000 Direct labour 200,000 Variable manufacturing overhead 150,000 725,000 Fixed manufacturing overhead An outside supplier has offered to supply the 25,000 units at $15.00 each. All of ABC's related variable costs, but only $475,000 of the fixed costs, would be eliminated if the offer is accepted. Acceptance will result in a O a. Savings of $625,000. O b. loss of $625,000. c. savings of $400,000. O d. loss of $400,000. ABC Manufacturing uses standard costing with manufacturing overhead applied based on direct labour hours (DLH). Overhead cost information is presented below: Input Cost per Unit Variable $7.20 per DLH 36 Fixed 48 $9.60 per DLH $ 84 Total Normal capacity for total manufacturing overhead per month is 20,000 DLH, with budgeted FOH at $ 192,000. During the most recent month 3,900 units were produced; 20,050 DLH were used and actual FOH was $195,500. What was the FOH spending variance? O 3,020 U O b. 3,500 U C. 4,800 F I a. 3,300 0

Answer & Explanation Solved by verified expert

See Answer