Variance Computations with Missing Data
The following information is provided to assist you in evaluating the performance of the production operations of Studio Company:
Units produced (actual)
42,000
Master production budget
Direct materials
$132,000
Direct labor
112,000
Overhead
159,200
Standard costs per unit
$1.65 x 2 gallons per unit of output
$14 per hour x 0.2 hour per unit
Variable overhead
$11.90 per direct labor-hour
Actual costs
Direct materials purchased and used
$150,960 (81,600 gallons)
111,708 (8,560 hours)
163,200 (61% is variable)
Variable overhead is applied on the basis of direct labor-hours.
Required
Prepare a report that shows all variable production cost price and efficiency variances and fixed production cost price and production volume variances.
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