Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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A manufacturer had the following information:
Budget
Actual
Units produced
10,000
11,050
Materials used in production 400 kg
?
Material Costs
$8,000
?
Direct Labour (Hours)
35,000 hrs 41,010 hrs
Direct Labour Costs
$385,000 $450,951
Variable Overhead Costs
$350,000 $411,441
Fixed Overhead Costs
$160,000 $136,358
Other Information:
-Overhead is Allocated on Direct Labour Hours.
-During the year, 602 kg of materials were purchased for $12,000.
-Beginning Direct Material Inventory: none.
-Ending Direct Material Inventory: 39kg.
Calculate variable overhead rate (spending) variance.
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Transcribed Image Text:A manufacturer had the following information: Budget Actual Units produced 10,000 11,050 Materials used in production 400 kg ? Material Costs $8,000 ? Direct Labour (Hours) 35,000 hrs 41,010 hrs Direct Labour Costs $385,000 $450,951 Variable Overhead Costs $350,000 $411,441 Fixed Overhead Costs $160,000 $136,358 Other Information: -Overhead is Allocated on Direct Labour Hours. -During the year, 602 kg of materials were purchased for $12,000. -Beginning Direct Material Inventory: none. -Ending Direct Material Inventory: 39kg. Calculate variable overhead rate (spending) variance.
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