Chapter 8 Standard costs and variance analysis Copr., Goedl/…

Chapter 8 Standard costs and variance analysis Copr., Goedl/Strickland, 2021 Four Cats, Inc. uses a standard cost system. The company reported the following data. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.  Data regarding the company’s standard cost and quantities are provided below. Standard quantity per unit Standard Price/Rate Direct materials 7.7 ounces $7.80 per ounce Direct labor 0.4 hours $38.70 per hour Variable manufacturing overhead 0.4 hours $6.10 per hour Below are the actual results for the most recent month of production. Actual results Units produced 7,750 units Raw material purchased and used 59,695 ounces for $429,804 Direct labor hours worked 2,610 hours Direct labor costs $105,966 Variable manufacturing overhead costs $14,877 Compute the Direct labor rate variance.

Chapter 2: Job-order costing Copr.Goedl Earthcore, LLC. coll…

Chapter 2: Job-order costing Copr.Goedl Earthcore, LLC. collects manufacturing overhead data by department. They have two departments—pouring and packaging. Relevant data is below. Pouring department: $12,000 fixed overhead, variable overhead $10 per labor hour Packaging department: $11,100 fixed overhead, variable $9 per machine hour The company estimated the following hours: Pouring department: 420 labor hours and 90 machine hours Packaging department: 100 labor hours and 390 machine hours Manufacturing overhead is applied based on departmental rates. Overhead is applied based on labor hours in the pouring department and machine hours in the packaging department. Calculate the predetermined manufacturing overrate rate for the packaging department. Study tip: When overhead is applied based on departmental rates, the predetermined overhead rate for each department only considers the overhead and cost drivers incurred in the department.