Just need help with Total Overhead Variance- 6000 is incorrect Rogen Corporation manufactures a...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Just need help with Total Overhead Variance- 6000 is incorrect
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7 per pound Direct labor-1.50 hours at $11.10 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $7.00 16.65 11.25 6.75 $41.65 The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00+ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,850 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $66,375 ($7.50 per hour) and total fixed overhead costs of $39,825 ($4.50 per hour). Actual costs for October in producing 4,700 units were as follows. Direct materials (4,890 pounds) $35,208 Direct labor (6,900 hours) 78,660 Variable overhead 62,602 Fixed overhead 24,098 Total manufacturing costs $200,568 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. Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.) Total materials variance 2308 Unfavorable Materials price variance 978 Unfavorable Materials quantity variance $ 1330 Unfavorable Total labor variance 405 Unfavorable Labor price variance 2070 Unfavorable - Total labor variance 405 i Unfavorable A Labor price variance 2070 Unfavorable A Labor quantity variance A 1665 Favorable (b) Compute the total overhead variance. Total overhead variance $ erhead variance s sodo 6000 Unfavorable univorables
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!