Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead...
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Accounting
Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given:
Standard costs per unit:
Raw materials (1.5 grams at $16 per gram) $24.00
Direct labor (0.75 hours at $8 per hour) $6.00
Variable overhead (0.75 hours at $3 per hour) $2.25
Actual experience for current year:
Units produced 22,400 units
Purchase of raw materials (21,000 gramsn at $17 per gram) $357,000
Raw materials used 33,400 grams
Direct labor(16,750 hours at $8 per hour) $134,000
Variable overhead cost incurred $48,575
Required:
Compute the following variances for raw materials, direct labor, and variable overhead, assuming the price variance for materials is recognized at point of purchase:
1. Direct materials price variance for materials is recognized at point of purchase:
2. Direct labor rate variance AND Direct material quantity variance.
3. Variable overhead spending variance and Variable overhead efficiency variance.
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