Please HELP FAST! Peaceful Corporation manufactures figurines based on the follo

Question

Please HELP FAST!

Peaceful Corporation manufactures figurines based on the following information.

Required:

Standard costs $20

• Materials (4 ounces at $5)

$8

• Direct labor (1 hour per unit)

$4

• Variable overhead (based on direct labor hours)

Fixed overhead budget $19,000 Actual results and costs

• Materials purchased

• Units

9,000

• Cost

$39,600 Materials used in production

• Finished product units

2,000

• Raw material (ounces)

8,200

• Direct labor hours

2,000

• Direct labor cost

$20,000

• Variable overhead costs

$5,980

• Fixed overhead costs

$19,500

Explanation / Answer

Actual Production Costs Units Used Costs Direct Material Costs 8200 ounces          36,080 Direct labour costs 2000 hours          20,000 Varialbe Overhead Costs 2000 hours            5,980 Fixed Overhead Costs          19,500 Actual Production Costs          81,560 Flexed Budget Production Units Usage Costs Direct Material Costs 8000 ounces 40000 Direct labour costs 2000 hours 16000 Varialbe Overhead Costs 2000 hours 8000 Fixed Overhead 19000 Flexed Budget Costs                   83,000 Flexible Budget Variances Units Used Costs Remarks Direct Material Costs 200 more used in acutal            3,920 Although More material used, less overall cost due to lower price per ounce. In actual paid 4.4 per ounce against budgeted of 5 per ounce Direct labour costs Same Hours          (4,000) Same Hours But Paid more per hour. Paid 10 against budgeted 8 per hour Varialbe Overhead Costs Same Hours            2,020 Less overheads incured. 3 per hour incured against budgeted 4 per hour Fixed Overhead Costs             (500) 500 more budgeted costs were incured Actual Production Costs            1,440 Actual Production Costs were less than flex budgeted costs

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