Question

In: Accounting

The following data relates to Potawatomi Corporation's operations for the month. Potawatomi produced 8,500 units and...

The following data relates to Potawatomi Corporation's operations for the month. Potawatomi produced 8,500 units and the normal monthly capacity is 20,000 direct labor hours.

Standard Unit Costs

Total

Actual Costs

Direct Material:

         Standard (5 lbs. @ $2.10/lb.)

$10.50

         Actual (39,000 lbs. @ $2.20/lb.)

$85,800

Direct Labor:

        Standard (2 hrs. @ $12/hr.)

$24.00

        Actual (18,000 hrs. @ $11.90/hr.)

$214,200

Variable Overhead:

        Standard (2 hrs. @ $4.00/hr.)

$8.00

        Actual

$69,700

               Total

$42.50

$369,700

Calculate the following variances: Show your solutions

a. Materials price variance

b. Materials efficiency variance

c.    Labor rate variance

d. Labor efficiency variance

e. Variable overhead spending variance

f.    Variable overhead efficiency variance

Solutions

Expert Solution

Cost variances are shown just for your understanding.

Hope you understood the solution. If you have any doubt please leave your doubt in the comment section so that I can clarify your doubt.

Thank you.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product...
The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. Standard Unit Costs Total Actual Costs Direct Material:          Standard (2 lb. @ $10/lb.) $20          Actual (2,200 lb. @ $9.80/lb.) $21,560 Direct Labor:         Standard (2 hr. @ $20/hr.) $40         Actual (2,400 hrs. @ $20.20/hr.) $48,480 Variable Overhead:         Standard (0.5 hr. @ $4/hr.) $2         Actual $8,700                Total...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 82,000Direct labor $ 41,500Variable manufacturing overhead$ 20,200 Fixed manufacturing overhead31,900 Total manufacturing overhead $ 52,100Variable selling expense$ 14,600 Fixed selling expense23,200 Total selling expense $ 37,800Variable administrative expense$ 5,300 Fixed administrative expense27,600 Total administrative expense $ 32,900 Required:1. With respect to cost classifications for preparing financial statements:a. What is the total product cost?b. What...
Q6 A company produced 10,000 units in March 2018 and sold 8,500 of them. The variable...
Q6 A company produced 10,000 units in March 2018 and sold 8,500 of them. The variable manufacturing costs per unit was $16 and the fixed cost per unit was $3 Variable selling and administrative expenses were $5 and the fixed selling and administrative expenses were $45,000.    (5 points each 15 points total) Using absorption costing what would be the income from operations for March? $_____________________________________________ Using variable costing what would be the income from operations for March? $_______________________________________________ C. Explain...
Frazier Manufacturing Company collected the following production data for the past month: Units Produced Total Cost...
Frazier Manufacturing Company collected the following production data for the past month: Units Produced Total Cost 1,600 $66,000 1,300 57,000 1,500 67,500 1,100 49,500 If the high-low method is used, what is the monthly total cost equation? A. Total cost = $0 + $45/unit B. Total cost = $13,200 + $33/unit C. Total cost = $16,500 + $30/unit D. Total cost = $9,900 + $36/unit I know the answer is $13,200+33/unit. But I do not see how the math is...
Sheehan Brothers, Inc. produced and sold 1,000 units during it first month of operations. It reported...
Sheehan Brothers, Inc. produced and sold 1,000 units during it first month of operations. It reported the following costs and expenses for the month: Direct materials $86,000 Direct labor $43,500 Variable manufacturing overhead $21,800 Fixed manufacturing overhead $33,100 Total manufacturing overhead $54,900 Variable selling expense $15,400 Fixed selling expense $24,800 Total selling expense $40,200 Variable administrative expense $5,700 Fixed administrative expense $28,400 Total administrative expense $34,100 Required: Read each question carefully and compute the answers to each. Enter your answer...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 73,000 Direct labor $ 37,000 Variable manufacturing overhead $ 16,600 Fixed manufacturing overhead 29,200 Total manufacturing overhead $ 45,800 Variable selling expense $ 12,800 Fixed selling expense 19,600 Total selling expense $ 32,400 Variable administrative expense $ 4,400 Fixed administrative expense 25,800 Total administrative expense $ 30,200 Required: 1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct Material $77,000 Direct Labor $39,000 Variable Manufacturing Overhead $18,200 Fixed Manufacturing Overhead $30,400 Total Manufacturing Overhead $48,600 Variable Selling expense $13,600 Fixed Selling expense $21,200 Total Selling expense $34,800 Variable Administrative expense $4,800 Fixed...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 84,000 Direct labor $ 42,500 Variable manufacturing overhead $ 21,000 Fixed manufacturing overhead 32,500 Total manufacturing overhead $ 53,500 Variable selling expense $ 15,000 Fixed selling expense 24,000 Total selling expense $ 39,000 Variable administrative expense $ 5,500 Fixed administrative expense 28,000 Total administrative expense $ 33,500 Required: 1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 82,000 Direct labor $ 41,500 Variable manufacturing overhead $ 20,200 Fixed manufacturing overhead 31,900 Total manufacturing overhead $ 52,100 Variable selling expense $ 14,600 Fixed selling expense 23,200 Total selling expense $ 37,800 Variable administrative expense $ 5,300 Fixed administrative expense 27,600 Total administrative expense $ 32,900 Required: 1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 85,000 Direct labor $ 43,000 Variable manufacturing overhead $ 21,400 Fixed manufacturing overhead 32,800 Total manufacturing overhead $ 54,200 Variable selling expense $ 15,200 Fixed selling expense 24,400 Total selling expense $ 39,600 Variable administrative expense $ 5,600 Fixed administrative expense 28,200 Total administrative expense $ 33,800 Required: 1. With respect to cost classifications...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT