Costs and Production Data Actual Standard (a) Ayala Corporation accumulates the
ID: 2537486 • Letter: C
Question
Costs and Production Data
Actual
Standard
(a)
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 10,900 Direct labor payroll $168,720 $166,770 Direct labor hours worked 14,800 15,300 Manufacturing overhead incurred $232,608 Manufacturing overhead applied $235,008 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $66,400 Variable overhead rate per machine hour $3.20 Fixed overhead rate per machine hour $1.60Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $492,000. Selling and administrative expenses were $39,400. Assume that the amount of raw materials purchased equaled the amount used.
Explanation / Answer
Standard Actual Particulars Qty/ hours Rate amount Qty/ hours Rate amount Materials 10,900.00 1.90 20,710.00 11,300.00 2.10 23,730.00 Labour 15,300.00 10.900 166,770.00 14,800.00 11.40 168,720.00 DMCV = Standard cost - Actual cost DMCV = 20710 - 23730 DMCV = 3,020 U DMPV = (SP-AP)*AQ purchased DMPV = (1.90 - 2.10)11300 DMPV = 2,260 U DMQV= (SQ-AQ)SP DMQV= (10900 - 11300)1.90 DMQV= 760 U DLCV = Standard cost - Actual cost DLCV = 166770 - 168720 DLCV = 1950 U DLRV= (SR-AR)AH DLRV= (10.90 - 11.40)14800 DLRV= 7400 U DLEV = (SH-AH)SR DLEV = (15300 - 14800)10.9 DLEV = 5,450F