80.2K

Verified Solution

Link Copied!

Problem: Xenias Company produces a single product. Variable manufacturing overhead is applied to productions on the basis of direct labor-hours. The standard costs for one unit of a product are as follows: Description Per Unit Cost Tk. Direct material: 6 ounces at Tk 12 per ounce 72 Direct labor:0.8 hours at Tk 50 per hour 40 Variable manufacturing overhead: 0.8 hours at Tk 30 per hour 24 Total standard variable costs per unit 136 During last June, 4,000 units were produced. The costs associated withy June's operations were as follows: Description Total Cost Tk. Direct material purchased: 26,000 ounces at Tk 12.50 per ounce 3,25,000 Direct material used production 23,000 ounces Direct labor: 3,000 hours at Tk 45 per hour 1,35,000 Variable manufacturing overhead actually incurred 99,000 Requirements: Determine the following: i) Direct Material Price Variance; ii) Direct Material Quantity Variance; iii) Direct Labor Rate Variance; iv) Direct Labor Efficiency Variance; v) Variable Overhead Rate Variance; and, vi) Variable Overhead Efficiency Variance TONOWS. Description Per Unit Cost Tk. Direct material: 6 ounces at Tk 12 per ounce 72 Direct labor:0.8 hours at Tk 50 per hour 40 Variable manufacturing overhead: 0.8 hours at Tk 30 per hour 24 Total standard variable costs per unit 136 During last June, 4,000 units were produced. The costs associated withy June's operations were as follows: Description Total Cost Tk. Direct material purchased: 26,000 ounces at Tk 12.50 per ounce 3,25,000 Direct material used production 23,000 ounces Direct labor: 3,000 hours at Tk 45 per hour 1,35,000 Variable manufacturing overhead actually incurred 99,000 Requirements: Determine the following: i) Direct Material Price Variance; ii) Direct Material Quantity Variance; iii) Direct Labor Rate Variance; iv) Direct Labor Efficiency Variance; v) Variable Overhead Rate Variance; and, vi) Variable Overhead Efficiency Variance

Answer & Explanation Solved by verified expert

See Answer