# 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
Direct material price variance, XYZ Company