classvarianceproblem

classvarianceproblem - Test 5 Variance Problem 1....

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Test 5 Variance Problem 1. Spaulding, Inc. use standard costing for its one product, baseball bats. The standards call for 3 board- feet of wood at \$1.40 per board-foot, and 45 minutes of work at \$12 per hour per bat. Total manufacturing overhead costs were estimated at \$2,625 of which the variable portion was \$5.00 per bat and the fixed portion was \$7.50 per bat with an estimate of 2,100 bats to be produced. Spaulding applies MOH based on unit produced. Spaulding identifies price variances at the earliest possible point in time. The budgeted unit selling price was \$40 while the actual selling price was \$41. During March, the company had the following results: Direct material purchased = 6,200 board-feet at a cost of \$8,990. Direct material used in production = 5,900 board-feet Direct labor used = 1,600 hours at a cost of \$18,880. Actual manufacturing overhead fixed costs = \$15,000 Actual manufacturing overhead variable costs = \$10,250 Bats produced = 2,000 1. Determine the standard cost. 2.

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This note was uploaded on 07/09/2011 for the course ACG 2071 taught by Professor Tanner during the Spring '11 term at UNF.

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classvarianceproblem - Test 5 Variance Problem 1....

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