Question

Question 3 This grade has been saved to Gradebook. Your answer has been saved and sent for grading. See Gradebook for score details. Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $6.00 per pound $ 6.00 Direct labor—2.5 hours at $11.30 per hour 28.25 Variable manufacturing overhead 17.50 Fixed manufacturing overhead 7.50 Total standard cost per unit $59.25 The predetermined manufacturing overhead rate is $10.00 per direct labor hour ($25.00 ÷ 2.5). It was computed from a master manufacturing overhead budget based on normal production of 14,500 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $101,500 ($7.00 per hour) and total fixed overhead costs of $43,500 ($3.00 per hour). Actual costs for October in producing 4,600 units were as follows. Direct materials (4,710 pounds) $ 29,202 Direct labor (11,400 hours) 132,240 Variable overhead 85,098 Fixed overhead 32,202 Total manufacturing costs $278,742 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. (a) Compute all of the materials and labor variances. Total materials variance $ 1602 Unfavorable Materials price variance $ 942 Unfavorable Materials quantity variance $ 660 Unfavorable Total labor variance $ 2290 Unfavorable Labor price variance $ 3420 Unfavorable Labor quantity variance $ 1130 Favorable (b) Compute the total overhead variance. Total overhead variance $ 2300 Unfavorable

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Answer 1