Problem 11-2A Costs and Production Data Actual Standard LINK TO TEXT LINK TO TEX
ID: 2491570 • Letter: P
Question
Problem 11-2A
Costs and Production Data
Actual
Standard
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Problem 11-2A
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.Costs and Production Data
Actual
Standard
Raw materials unit cost $2.10 $1.90 Raw materials units used 11,300 10,700 Direct labor payroll $175,500 $171,360 Direct labor hours worked 15,000 15,300 Manufacturing overhead incurred $212,930 Manufacturing overhead applied $215,730 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $73,950 Variable overhead rate per machine hour $3.00 Fixed overhead rate per machine hour $1.70Overhead 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 $453,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used.
Explanation / Answer
Material Price Variance = ( Std price of Material- Actual Price of Material) Actual Qty Used = ( 1.09-2.10)11300 11413 Unfavourable Material Qty Variance = ( Std Qty- Actual Qty) Std Price of Material = 654 Unfavourable Labour Price Variance = ( Std Rate per Hour- Actual Rate) Actual Hours (