Concord Corporation manufactures a single product. The standard cost per unit of product is shown below.Direct materials–1 pound plastic at $6.00 per pound$ 6.00Direct labor-2.00 hours at $12.20 per hour24.40Variable manufacturing overhead15.00Fixed manufacturing overhead13.00Total standard cost per unit$58.40The predetermined manufacturing overhead rate is $14 per direct labor hour ($28.00 ÷ 2.00). It was computed from a mastermanufacturing overhead budget based on normal production of 10,000 direct labor hours (5,000 units) for the month. The masterbudget showed total variable costs of $75,000 ($7.50 per hour) and total fixed overhead costs of $65,000 ($6.50 per hour). Actualcosts for October in producing 3,400 units were as follows.Direct materials (3,600 pounds)$ 22,320Direct labor (6,650 hours)83,790Variable overhead66,638Fixed overhead30,462Total manufacturing costs$203,210 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Rawmaterials inventories, therefore, can be ignored.(a)Compute all of the materials and labor variances.Total materials variance$Materials price variance$Materials quantity variance$Total labor variance$Labor price varianceLabor quantity variance(b)Compute the total overhead variance.Total overhead variance$%24%24%24

Name: Concord Corporation manufactures a single product. The standard cost
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Description: Concord Corporation manufactures a single product. The standard cost per unit of product is shown below.Direct materials–1 pound plastic at $6.00 per pound$ 6.00Direct labor-2.00 hours at $12.20 per hour24.40Variable manufacturing overhead15.00Fixed

Variance refers to the difference between the actual and the estimated results of the company.…

Business

Accounting

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. (a) Compute all of the materials and labor variances. Total materials variance $ Materials price variance Materials quantity variance Total labor variance Labor price variance 2$ Labor quantity variance 2$ (b) Compute the total overhead variance. Total overhead variance $ %24 %24 %24 %24

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. (a) Compute all of the materials and labor variances. Total materials variance $ Materials price variance Materials quantity variance Total labor variance Labor price variance 2$ Labor quantity variance 2$ (b) Compute the total overhead variance. Total overhead variance $ %24 %24 %24 %24

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3PB: Direct materials, direct labor, and factory overhead cost variance analysis Road Gripper Tire Co....

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