Crane Corporation accumulates the following data relative to jobs started and finished during the month of June 2025. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted foxed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.00 $1.90 11,000 10,600 $162,800 $159,600 14,800 15,200 $201,200 $205,200 41,500 $62,250 $3 $1.50 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $450,000. Selling and administrative expenses were $35,000. Assume that the amount of raw materials purchased equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to 0 decimal places, eg. 52.) (1) Total materials variance $ Materials price variance $ Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance $

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Chapter26: Manufacturing Accounting: The Job Order Cost System
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Crane Corporation accumulates the following data relative to jobs started and finished during the month of June 2025.
Costs and Production Data
Raw materials unit cost
Raw materials units
Direct labor payroll
Direct labor hours
Manufacturing overhead incurred
Manufacturing overhead applied
Machine hours expected to be used at normal capacity
Budgeted foxed overhead for June
Variable overhead rate per machine hour
Fixed overhead rate per machine hour
Actual
Standard
$2.00
$1.90
11,000
10,600
$162,800
$159,600
14,800
15,200
$201,200
$205,200
41,500
$62,250
$3
$1.50
Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The
jobs were sold for $450,000. Selling and administrative expenses were $35,000. Assume that the amount of raw materials purchased
equaled the amount used.
(a)
Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, eg. 52.75 and
final answers to 0 decimal places, eg. 52.)
(1)
Total materials variance
$
Materials price variance
$
Materials quantity variance
$
(2)
Total labor variance
$
Labor price variance
$
Labor quantity variance
$
Transcribed Image Text:Crane Corporation accumulates the following data relative to jobs started and finished during the month of June 2025. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted foxed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.00 $1.90 11,000 10,600 $162,800 $159,600 14,800 15,200 $201,200 $205,200 41,500 $62,250 $3 $1.50 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $450,000. Selling and administrative expenses were $35,000. Assume that the amount of raw materials purchased equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to 0 decimal places, eg. 52.) (1) Total materials variance $ Materials price variance $ Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance $
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