Total product cost per unit 46 10000 units remaining

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Total product cost per unit........$4610,000 units remaining from year 1x$42.70 (see question 1)=$427,00034,000 units from year 2x$46=$1,564,000Sales revenue......................$ 3,300,000(44,000 units sold x $75)Cost of goods sold.................<1,991,000>(427,000 + 1,564,000)Variable selling & administrative ..<240,000>Contribution margin................1,069,000Fixed overhead.....................<320,000>Fixed selling & administrative.....<180,000>Net income.........................$569,000
Question 8Border Company employs a standard costing system and uses a flexible budget to predictoverhead costs at various levels of activity. For the most recent year, Border hadtotal budgeted overhead costs of $160,000 for 10,000 direct labor hours and $240,000for 20,000 direct labor hours. During the most recent year, Border generated thefollowing data:Actual number of units produced......................2,000 unitsActual variable overhead costs........................$135,000Variable overhead efficiency variance.................$3,200 FavorableStandard direct labor hours for each unit produced....8.5 hoursCalculate thevariable overhead spending variancefor the most recent year.10,000)xSR)x8)xSR)x8)
Question 9Levram Company uses a standard costing system. During the past year, the followingvariances were calculated:Direct labor rate variance......................$23,000 UnfavorableDirect labor efficiency variance................$43,500 UnfavorableVariable overhead efficiency variance...........$30,000 UnfavorableAccording to Levram's standards, every unit produces should require two direct laborhours and the standard variable overhead rate is $4 per direct labor hour. During thepast year, Levram used 15% more direct labor hours than should have been used giventhe standards.Calculate theactual direct labor rate per hourpaid by Levram Company during the pastyear.xSR)xSR)SRxSR)x5.80)AR
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Term
Winter
Professor
MARCSMITH
Tags
Accounting, Direct material price variance, XYZ Company

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