Rogen Corporation manufactures a single product. The standard cost per unit of product is shown...
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Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below Direct materials-2 pound plastic at $6.00 per pound Direct labor-2.0 hours at $11.00 per hour Variable manufacturing overhead Fixed manufacturing overhead $12.00 22.00 11.00 9.00 $54.00 Total standard cost per unit The predetermined manufacturing overhead rate is $10 per direct labor hour ($20.00 2.0). It was computed from a master manufacturing overhead budget based on normal production of 10,200 direct labor hours (5,100 units) for the month. The master budget showed total variable costs of $56,100 ($5.50 per hour) and total fixed overhead costs of $45,900 ($4.50 per hour). Actual costs for October in producing 4,700 units were as follows Direct materials (9,540 pounds) Direct labor (9,280 hours) Variable overhead Fixed overhead 58,194 105,792 70,500 25,500 $259,986 Total manufacturing costs 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 the overhead controllable variance and the overhead volume variance Overhead controllable variance Overhead volume variance
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