A company established a direct
material standard of 2 pounds of material at a cost of $6 per pound for unit produced.
During August the company produced 6,000 units of product. 10,000 pounds of
direct material which cost $6.50 per pound were used in the production process.
Compute the direct material quantity variance for August.
Product A has a sales price of
$10 per unit. Based on a 10,000-unit production level, the variable costs are
$6 per unit and the fixed costs are $3 per unit. Using a flexible budget for
12,500 units, what is the budgeted operating income from Product A?
Bartels Corp. produces
woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels’
standard labor cost is $12 per hour. During August, Bartels produced 10,000
carvings and used 21,040 hours of direct labor at a total cost of $250,376. What
is Bartels’ total labor variance for August?
Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a
carving. Bartels’ standard labor cost is $12 per hour. During August, Bartels
produced 10,000 carvings and used 21,040 hours of direct labor at a total cost
of $250,376. What is Bartels’ labor rate variance for August?
Actual fixed overhead for Kapok
Company during March was $92,780. The flexible budget for fixed overhead this
period is $89,000 based on a production level of 5,000 units. If the company
actually produced 4,200 units what is the fixed overhead volume variance for
A company’s flexible budget for
12,000 units of production showed sales, $48,000; variable costs, $18,000; and
fixed costs, $16,000. The operating income expected if the company produces and
sells 16,000 units is: