Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.3 ounces $ 4.00 per ounce $ 25.20 Direct labor 0.9 hours $ 14.00 per hour $ 12.60 Variable overhead 0.9 hours $ 4.00 per hour $ 3.60 The company reported the following results concerning this product in February. Originally budgeted output 5,200 units Actual output 5,900 units Raw materials used in production 33,300 ounces Actual direct labor-hours 2,050 hours Purchases of raw materials 33,800 ounces Actual price of raw materials $ 37.10 per ounce Actual direct labor rate $ 27.60 per hour Actual variable overhead rate $ 5.50 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for February is: rev: 08_11_2020_QC_CS-222889 Multiple Choice $13,040 U $12,990 F $13,040 F $12,990 U
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Majer Corporation makes a product with the following
| Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost Per Unit | ||||||
| Direct materials | 6.3 | ounces | $ | 4.00 | per ounce | $ | 25.20 | |
| Direct labor | 0.9 | hours | $ | 14.00 | per hour | $ | 12.60 | |
| Variable |
0.9 | hours | $ | 4.00 | per hour | $ | 3.60 | |
The company reported the following results concerning this product in February.
| Originally budgeted output | 5,200 | units | |
| Actual output | 5,900 | units | |
| Raw materials used in production | 33,300 | ounces | |
| Actual direct labor-hours | 2,050 | hours | |
| Purchases of raw materials | 33,800 | ounces | |
| Actual price of raw materials | $ | 37.10 | per ounce |
| Actual direct labor rate | $ | 27.60 | per hour |
| Actual variable overhead rate | $ | 5.50 | per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for February is:
rev: 08_11_2020_QC_CS-222889
-
$13,040 U
-
$12,990 F
-
$13,040 F
-
$12,990 U
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