Colusa Company makes galvanized steel feed buckets for farmers and uses standard costing in order to...

Colusa Company makes galvanized steel feed buckets for farmers and uses standard costing in order to control its costs. The following are standard costs for a steel feed bucket:

DM (2 lb. of steel at 4$ per lb.) $8

DL (.75 hours at $16 an hour) 12

Variable overhead (0.75 hr at $20 an hr.) 15

Standard Variable cost per unit 35

The following data applies to November during wich 6,000 buckets were produced and sold:

DM(11,900 lbs.) $45,220

DL(4,600 hours) $69,000

VOH $94,300

Compute materials, labor and variable overhead variances.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Griffen Company makes pipe using metal. The company uses a standard costing system. Variable overhead is...

Griffen Company makes pipe using metal. The company uses a standard costing system. Variable overhead is allocated on the basis of direct material usage (pounds). Overhead is allocated to units based on expected production of 12,000 units. Griffen maintains a materials inventory, so the amount of material used is not necessarily the same as the amount of material purchased in any one month. The standard cost sheet for a unit of pipe follows. Direct material 6 pounds @ $ 5...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of total manufacturing overhead for an estimated activity level of 49,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,332,000 of total manufacturing overhead for an estimated activity level of 74,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,207,000 of total manufacturing overhead for an estimated activity level of 71,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,615,000 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,068,000 of total manufacturing overhead for an estimated activity level of 89,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,066,000 of total manufacturing overhead for an estimated activity level of 82,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,207,000 of total manufacturing overhead for an estimated activity level of 71,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $980,000 of total manufacturing overhead for an estimated activity level of 98,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

Luzadis Company makes furniture using the latest automated technology. The company uses job-order costing system and...

Luzadis Company makes furniture using the latest automated technology. The company uses job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year. Machine Hours: 75,000 Fixed Manufacturing overhead Cost $795,000 Variable manufacturing overhead per computer-hour $1.40 During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the...

Subjects