Guadelupe company has set the following standard costs per


Guadelupe Company has set the following standard costs per unit for the product it manufactures. 

Direct materials (10 lbs. @ $ 3.00 per lb.) . . . . . . .$ 30.00
Direct labor (4 hr. @ $ 6 per hr.) . . . . . . . . . . . . . . 24.00
Overhead (4 hr. @ $ 2.50 per hr.) . . . . . . . . . . . . . 10.00
Total standard cost . . . . . . . . . . . . . . . . . . . . . . . . . $ 64.00
The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 10,000 units per month. The following flexible budget information is available.

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During March, the company operated at 90% of capacity and produced 9,000 units, incurring the following actual costs.

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Required: 

1. Compute the direct materials cost variance, including its price and quantity variances. 

2. Compute the direct labor variance, including its rate and efficiency variances. 

3. Compute these variances: 

(a) Variable overhead spending and efficiency, 

(b) Fixed overhead spending and volume, 

(c) Total overhead controllable. 

4. Prepare a detailed overhead variance report (as in Exhibit 23.15) that shows the variances for individual items of overhead.

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Managerial Accounting: Guadelupe company has set the following standard costs per
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