nomatter49
Sep 5, 2011, 07:39 PM
Data for INFO CORP and its product:__STANDARD ACTUAL
Direct Materials (2FT. @ $5)_________$10.00
11,750 FT. PURCHASED and USED_________________$61,100.00
Direct Labor (0.5 hr @ $10)____________5.00
2,900 hours____________________________________29,580.00
Variable Overhead (0.5@4)______________2.00____10,500.00
Fixed Overhead (0.5@2)_________________1.00_____6,000.00
Total Standard Costs per unit_______$18.00
Fixed overhead rate is based on expected activity of 2,500 hours
Additional Information:
1. Budgeted Selling Price per unit $25.00
Acual Selling Price per unit $24.00
2. Assume there are no other operating expenses
This problem requires finding Level 0, Level 2, Materials, Labor, and (Four Way) Overhead Variances. But I'm not sure how many actual units were produced and sold.
I tried deriving units sold and produced through the actual materials used, or 5,875 which is 11,750 ft. Divided by 2 ft. Per unit. But I still can't compute for the four way overhead variance. I think my units produced is incorrect.
Here's the link to view my working paper:
http://www.facebook.com/photo.php?fbid=199112943488323&set=a.199112900154994.52391.100001688553084&type=1&theater
Direct Materials (2FT. @ $5)_________$10.00
11,750 FT. PURCHASED and USED_________________$61,100.00
Direct Labor (0.5 hr @ $10)____________5.00
2,900 hours____________________________________29,580.00
Variable Overhead (0.5@4)______________2.00____10,500.00
Fixed Overhead (0.5@2)_________________1.00_____6,000.00
Total Standard Costs per unit_______$18.00
Fixed overhead rate is based on expected activity of 2,500 hours
Additional Information:
1. Budgeted Selling Price per unit $25.00
Acual Selling Price per unit $24.00
2. Assume there are no other operating expenses
This problem requires finding Level 0, Level 2, Materials, Labor, and (Four Way) Overhead Variances. But I'm not sure how many actual units were produced and sold.
I tried deriving units sold and produced through the actual materials used, or 5,875 which is 11,750 ft. Divided by 2 ft. Per unit. But I still can't compute for the four way overhead variance. I think my units produced is incorrect.
Here's the link to view my working paper:
http://www.facebook.com/photo.php?fbid=199112943488323&set=a.199112900154994.52391.100001688553084&type=1&theater