Simon Manufacturing Corporation accumulates the following data - 14331

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $0.50
  • From: Business,
  • Posted on: Wed 10 Oct, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

 

Problem 25-2A

http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Simon Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2012.

Costs and Production Data

 

Actual

 

Standard

Raw materials unit cost

 

$2.25

 

$2.00

Raw materials units used

 

10,600

 

10,000

Direct labor payroll

 

$122,400

 

$120,000

Direct labor hours worked

 

14,400

 

15,000

Manufacturing overhead incurred

 

$184,500

   

Manufacturing overhead applied

     

$189,000

Machine hours expected to be used at normal capacity

     

42,500

Budgeted fixed overhead for June

     

$51,000

Variable overhead rate per hour

     

$3.00

Fixed overhead rate per hour

     

$1.20


Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.

 

Compute all of the variances for (1) direct materials and (2) direct labor.

Compute the total overhead variance.

Prepare an income statement for management. Ignore income taxes.

 

Solution Description

 

If you will give me A+++ rati

Attachments
Problem 25-2A.docx
Problem 25-2A.d...