Lily Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $6.00 per pound Direct labor-2.00 hours at $11.85 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (3,890 pounds) Direct labor (7,300 hours) Variable overhead Fixed overhead Total manufacturing costs The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00+2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $70,800 ($6.00 per hour) and total fixed overhead costs of $70,800 ($6.00 per hour). Actual costs for October in producing 3,700 units were as follows. (a) Total materials variance $23,729 Materials price variance 87.965 Compute all of the materials and labor variances. $ 63,934 26,966 $202.594 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. $6.00 23.70 12.00 12.00 $53.70

Lily Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $6.00 per pound Direct labor-2.00 hours at $11.85 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (3,890 pounds) Direct labor (7,300 hours) Variable overhead Fixed overhead Total manufacturing costs The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00+2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $70,800 ($6.00 per hour) and total fixed overhead costs of $70,800 ($6.00 per hour). Actual costs for October in producing 3,700 units were as follows. (a) Total materials variance $23,729 Materials price variance 87.965 Compute all of the materials and labor variances. $ 63,934 26,966 $202.594 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. $6.00 23.70 12.00 12.00 $53.70

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Description: Please do not give solution in image format thanku The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materialsinventories, therefore, can be ignored.(a)Compute all of the materia

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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