Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Direct materials (2 kg at $7.50 per kilogram) $15.00 per unit Direct labour (3 hours at $12 per hour) $36.00 per unit Variable overhead $36,270 Budgeted overhead for the month of April (based on expected activity of 11,160 direct labour hours) is as follows: Overhead is applied based on labour hours. The average activity per month is 12,090 direct labour hours. The company calculates overhead rates based on average activity. Results for the month of April are as follows: Fixed overhead 24,180 Units produced 3,906 Tulal overhead $60,450 Direct materials used (8,060 kg) $55,614 (a) Direct labour (11,780 hours) 144,305 Calculate the direct materials price, usage, and budget variances. Variable overhead 35,340 Fixed overhead 24,800 Direct materials price variance $ Total costs $260,059 Direct materials usage variance $ There was no beginning or ending work in process inventory Total materials budget variance $
Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Direct materials (2 kg at $7.50 per kilogram) $15.00 per unit Direct labour (3 hours at $12 per hour) $36.00 per unit Variable overhead $36,270 Budgeted overhead for the month of April (based on expected activity of 11,160 direct labour hours) is as follows: Overhead is applied based on labour hours. The average activity per month is 12,090 direct labour hours. The company calculates overhead rates based on average activity. Results for the month of April are as follows: Fixed overhead 24,180 Units produced 3,906 Tulal overhead $60,450 Direct materials used (8,060 kg) $55,614 (a) Direct labour (11,780 hours) 144,305 Calculate the direct materials price, usage, and budget variances. Variable overhead 35,340 Fixed overhead 24,800 Direct materials price variance $ Total costs $260,059 Direct materials usage variance $ There was no beginning or ending work in process inventory Total materials budget variance $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
Related questions
Question
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,