Homework Help is Here – Start Your Trial Now!
Engineering
Chemical Engineering
P23-1A Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-1.6 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 + 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $60,000 ($7.50 per hour) and total fixed overhead costs of $20,000 ($2.50 per hour). Actual costs for October in producing 4,800 units were as follows. Direct materials (5,100 pounds) Direct labor (7,400 hours) Variable overhead Fixed overhead Total manufacturing costs $ 7.00 19.20 12.00 4.00 $42.20 $ 36,720 92,500 59,700 21,000 $209,920 Instructions (a) Compute all of the materials and labor variances. (b) Compute the total overhead variance. 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.

P23-1A Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound Direct labor-1.6 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 + 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $60,000 ($7.50 per hour) and total fixed overhead costs of $20,000 ($2.50 per hour). Actual costs for October in producing 4,800 units were as follows. Direct materials (5,100 pounds) Direct labor (7,400 hours) Variable overhead Fixed overhead Total manufacturing costs $ 7.00 19.20 12.00 4.00 $42.20 $ 36,720 92,500 59,700 21,000 $209,920 Instructions (a) Compute all of the materials and labor variances. (b) Compute the total overhead variance. 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.

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
See similar textbooks
icon
Related questions
Question
= SET A P23-1A Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials 1 pound plastic at $7.00 per pound Direct labor-1.6 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 + 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $60,000 ($7.50 per hour) and total fixed overhead costs of $20,000 ($2.50 per hour). Actual costs for October in producing 4,800 units were as follows. Direct materials (5,100 pounds) Direct labor (7,400 hours) Variable overhead Fixed overhead Total manufacturing costs $ 7.00 19.20 12.00 4.00 $42.20 $36,720 92,500 59,700 21,000 $209,920 Instructions (a) Compute all of the materials and labor variances. (b) Compute the total overhead variance. 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.
Transcribed Image Text:= SET A P23-1A Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials 1 pound plastic at $7.00 per pound Direct labor-1.6 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 + 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $60,000 ($7.50 per hour) and total fixed overhead costs of $20,000 ($2.50 per hour). Actual costs for October in producing 4,800 units were as follows. Direct materials (5,100 pounds) Direct labor (7,400 hours) Variable overhead Fixed overhead Total manufacturing costs $ 7.00 19.20 12.00 4.00 $42.20 $36,720 92,500 59,700 21,000 $209,920 Instructions (a) Compute all of the materials and labor variances. (b) Compute the total overhead variance. 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.
Expert Solution
steps

Step by step

Solved in 5 steps with 14 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Introduction to Chemical Engineering Thermodynami…
Introduction to Chemical Engineering Thermodynami…
Chemical Engineering
ISBN:
9781259696527
Author:
J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:
McGraw-Hill Education
Elementary Principles of Chemical Processes, Bind…
Elementary Principles of Chemical Processes, Bind…
Chemical Engineering
ISBN:
9781118431221
Author:
Richard M. Felder, Ronald W. Rousseau, Lisa G. Bullard
Publisher:
WILEY
Elements of Chemical Reaction Engineering (5th Ed…
Elements of Chemical Reaction Engineering (5th Ed…
Chemical Engineering
ISBN:
9780133887518
Author:
H. Scott Fogler
Publisher:
Prentice Hall
Process Dynamics and Control, 4e
Process Dynamics and Control, 4e
Chemical Engineering
ISBN:
9781119285915
Author:
Seborg
Publisher:
WILEY
Industrial Plastics: Theory and Applications
Industrial Plastics: Theory and Applications
Chemical Engineering
ISBN:
9781285061238
Author:
Lokensgard, Erik
Publisher:
Delmar Cengage Learning
Unit Operations of Chemical Engineering
Unit Operations of Chemical Engineering
Chemical Engineering
ISBN:
9780072848236
Author:
Warren McCabe, Julian C. Smith, Peter Harriott
Publisher:
McGraw-Hill Companies, The
SEE MORE TEXTBOOKS