Chapter 11 Graded Quiz Answered

Chapter 11 Graded Quiz Answered - 1. A favorable materials...

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1. A favorable materials price variance coupled with an unfavorable material usage variance would most likely result from: Answer: The purchase and use of lower than standard quality material Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows: Standard quantity per wig standard cost per pound/hour Standard cost per wig Direct materials 3.00 pounds $3.80 $11.40 Direct labor 0.75 hours $12.00 $9.00 Variable overhead 0.75 hours $10.00 $7.50 Variable overhead at Reenu is based on direct labor-hours. The actual results for the month of October were as follows: Number of wigs produced 12,500 Direct labor-hours incurred 10,200 Pounds of direct materials purchased 42,000 Pounds of direct materials used in production 38,200 Cost of direct materials purchased $157,920 Direct labor cost $119,700 Variable overhead cost $98,600 2. What is Reenu's variable overhead rate variance for October? Answer: $3,00 Favorable
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This note was uploaded on 10/17/2011 for the course ACCT 206 taught by Professor Dr.zachry during the Spring '11 term at Nicholls State.

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Chapter 11 Graded Quiz Answered - 1. A favorable materials...

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