Chapter 11 Supplemental C Exercises

Chapter 11 Supplemental C Exercises - Problems: Set C o l l...

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P11-1C Loi Corporation manufactures a single product. The standard cost per unit of product is as follows. Direct materials—2 pounds of plastic at $5 per pound $10 Direct labor—2 hours at $12 per hour 24 Variable manufacturing overhead 8 Fixed manufacturing overhead 6 Total standard cost per unit $48 The master manufacturing overhead budget for the month based on normal productive capacity of 20,000 direct labor hours (10,000 units) shows total variable costs of $80,000 ($4 per labor hour) and total fixed costs of $60,000 ($3 per labor hour). Normal produc- tive capacity is 20,000 direct labor hours. Overhead is applied on the basis of direct labor hours. Actual costs for November in producing 9,800 units were as follows. Direct materials (20,500 pounds) $100,450 Direct labor (19,600 hours) 239,120 Variable overhead 78,100 Fixed overhead 59,200 Total manufacturing costs $476,870 The purchasing department normally buys the quantities of raw materials that are ex- pected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions (a) Compute all of the materials and labor variances. (b) Compute the total overhead variance. P11-2C Malik Manufacturing Company uses a standard cost accounting system to ac- count for the manufacture of exhaust fans. In July 2011, it accumulates the following data relative to 1,800 units started and finished. Cost and Production Data Actual Standard Raw materials Units purchased 21,000 Units used 21,000 22,000 Unit cost $3.30 $3.00 Direct labor Hours worked 3,450 3,600 Hourly rate $11.80 $12.50 Manufacturing overhead Incurred $101,500 Applied $108,000 Manufacturing overhead was applied on the basis of direct labor hours. Normal capac- ity for the month was 3,400 direct labor hours. At normal capacity, budgeted overhead costs were $20 per labor hour variable and $9 per labor hour fixed. Total budgeted fixed overhead costs were $30,600. Jobs finished during the month were sold for $280,000. Selling and administrative
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Chapter 11 Supplemental C Exercises - Problems: Set C o l l...

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