Answer to Question #126294 in Statistics and Probability for oiuytdfgvbhnj

Question

Direct Materials: 24kg @ $3.00 $ 72.00
Direct Labour: 6 hours @ $6.50 39.00
Factory overhead: 6 hours @ $0.75 4.50
Total unit standard cost $ 115.50
The factory overhead was based on the following flexible budget, in which 90% is normal capacity.
80% 90% 100%
Hours (direct labour) 40,000 45,000 50,000
Variable expenses $20,000 $22,500 $25,000



Actual data for November:

Fixed Expenses 11,250 11,250 11,250
Total Factory Overheads 31,250 33,750 36,250

Planned production, 7,500 units
Material put into production 192410kg @ $ 3.04 (average cost) Direct Labour 46,830 hours @ $6.60 average labour cost Actual FOH $ 36,340
Other data:
Beginning inventory, work in process, 80 units, all material, 50% converted Ending inventory, work in process, 100 units, all material, 50% converted Started in process during November 7,850 units

Required:
A variance analysis of
Material (Overall, Price and Usage)
FOH (Overall, Spending and Capacity)

Answer 1

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