70.2K

Verified Solution

Link Copied!

Pina Colada Company has developed the following standard costs for its product for 2022: PINA COLADACOMPANY Standard Cost Card Product A Standard Quantity Standard Price Standard Cost 4 pounds $3 $12 Cost Component Direct materials Direct labor Manufacturing overhead 3 hours 8 24 3 hours 4 12 $48 The company expected to produce 31,200 units of Product Ain 2022 using 93,600 direct labor hours, . Actual results for 2022 are as follows: 32,230 units of Product A were produced Actual direct labor costs were $775,720 for 94,600 direct labor hours worked, Actual direct materials purchased and used during the year cost $363,000 for 132,000 pounds, Actual variable overhead incurred was $162,000 and actual fixed overhead incurred was $212,000. . . Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or unfavorable The company expected to produce 31,200 units of Product Ain 2022 using 93,600 direct labor hours. . Actual results for 2022 are as follows: 32,230 units of Product A were produced. Actual direct labor costs were $775,720 for 94,600 direct labor hours worked. Actual direct materials purchased and used during the year cost $363,000 for 132,000 pounds, Actual variable overhead incurred was $162,000 and actual fixed overhead incurred was $212,000. . . Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorab unfavorable (a) Materials Quantity Variance $ (b) Total Direct Labor Variance $ (c) Direct Labor Quantity Variance $ d (d) Direct Materials Price Variance $ (e) Total Overhead Variance $ Save for later

Answer & Explanation Solved by verified expert

See Answer