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Unformatted text preview: 9. 43,000 hours of direct labor were used in production at a cost of $847,500 10. Actual manufacturing overhead costs for the year were $1,396,627. These costs were analyzed into $1,195,402 of fixed overhead and $201,225 of variable overhead. Normal activity for this production line is 200,000 valves per year. Standard overhead rates are computed based on normal activity based on standard direct labor hours. REQUIRED: a. Calculate price and usage variances for direct materials b. Calculate rate and efficiency variances for direct labor c. Compute overhead variances using a four way analysis of variances d. Prepare all summary journal entries for this case assuming a 4 way analysis of overhead variances is used. e. Compute overhead variances using a 2 way analysis of variances f. Compute overhead variances using a 3 way analysis of variance...
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This note was uploaded on 11/09/2011 for the course ACCT 3337 taught by Professor Staff during the Fall '08 term at University of Houston.
- Fall '08