Mifflin Corporation manufactures a single product. The standard cost - 10506

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Mon 28 May, 2012
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Request Description

 

Mifflin Corporation manufactures a single product. The standard cost per unit of product is shown below.

 

 

Direct materials-1 pound plastic at $7.00 per pound

$ 7.00

 

Direct labor-1.7 hours at $11.80 per hour

20.06

 

Variable manufacturing overhead

11.34

 

Fixed manufacturing overhead

3.80

 

Total standard cost per unit

$42.20

 

The predetermined manufacturing overhead rate is $8.91 per direct labor hour ($15.14 ÷ 1.7). It was computed from a master manufacturing overhead budget based on normal production of 8,670 direct labor hours (5,100 units) for the month. The master budget showed total variable costs of $579,380 ($7.50 per hour) and total fixed overhead costs of $200,850 ($2.60 per hour). Actual costs for October in producing 5,000 units were as follows.

 

 

Direct materials (5,200 pounds)

$ 37,960

 

Direct labor (8,290 hours)

102,796

 

Variable overhead

57,950

 

Fixed overhead

20,250

 

     Total manufacturing costs

$218,956

 

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

 

Instructions

 

Compute all of the materials, labor, and total overhead variances.  (Round computations and final answers to 0 decimal places, e.g. 125.)

 

Total materials variance

 

 

Materials price variance

 

 

Materials quantity variance

 

 

Total labor variance

 

 

Labor price variance

 

 

Labor quantity variance

 

 

Total overhead variance

 

 

 

 

 

Solution Description

 

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