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Question 31

Kopecky Inc., which produces a single product, has prepared the following standard cost sheet for one unit of
the product.
Direct materials (8 kilograms at $2.50 per
kilogram)
Direct labour (3 hours at $12.00 per hour)

$20.00
$36.00

During the month of April, the company manufactures 230 units and incurs the following actual costs.
Direct materials (1,900
kilograms)
Direct labour (700 hours)

$4,940
$8,120

Calculate the total, price, and quantity variances for materials and labour.

Total materials variance:

$

Materials price variance:

$

Materials quantity variance:

$

Total labour variance:

$

Labour price variance:

$

Labour quantity variance:

$

340

190

150

160

280

120

uestion 32
The following information was taken from the annual manufacturing overhead cost budget of Fernetti
Company.
Variable manufacturing overhead costs
Fixed manufacturing overhead costs
Normal production level in labour hours
Normal production level in units
Standard labour hours per unit

$33,000
$19,800
16,500
4,125
4

During the year, 4,000 units were produced, 16,100 hours were worked, and the actual manufacturing overhead

) (b) Calculate the total.5 hours at $20 per hour) Variable overhead (0. Direct materials (2. Therefore. Because the company deals solely with educational institutions.00 4. and volume overhead variances.00 1. Direct materials (1 petrie dish at $2 per dish) Direct labour (0. Overhead is applied on the basis of direct labour hours. (Round your answers to 0 decimal places. Shown below are the standard costs for a typical test. the dishes purchased each month are used that month. controllable.00 10.020 dishes) $ 4. the price of each test is strictly regulated. the costs incurred must be carefully monitored and controlled.5 hours at $3 per hour) Total standard cost per test $ 2. (a) Calculate the total.) (a) Item Amount Hours Rate 33000 2 16500 Variable overhead $ $ Fixed overhead Total overhead $ 19800 16500 52800 16500 1. and variable predetermined manufacturing overhead rates. and universities.000 tests were conducted. when 2. Actual activity for the month of May 2009. Actual fixed manufacturing overhead costs equalled budgeted fixed manufacturing overhead costs.2 $ 3. fixed. colleges.000.50 The lab does not maintain an inventory of petrie dishes. (Round your answers to 2 decimal places.242 . resulted in the following.5 hours at $8 per hour) Fixed overhead (0.50 $17.was $54.2 (b) Total overhead variance: $ Overhead controllable variance: $ Overhead volume variance: $ 2800 2200 600 Question 33 Hi-Tek Labs performs steroid testing services to high schools. Therefore.

600.400 Monthly budgeted fixed overhead is $3.100 3. and selling and administrative expenses were $2. (If a number is negative enter it in (parenthesis). Calculate the price and quantity variances for direct materials and direct labour.000. 2009 $ 45000 35000 10000 Variances Materials price Materials quantity $ -202 -40 Labour price Labour quantity Overhead controllable -995 Overhead volume 0 Total variances-favourable 100 -500 -1637 8363 -2000 .895 8.Direct labour (995 hours) Variable overhead Fixed overhead 20. Revenues for the month were $45. Materials price variance: $ Materials quantity variance: $ Labour price variance: $ Labour quantity variance: $ 202 40 995 100 Overhead controllable variance: $ 500 Overhead volume variance: 0 $ Complete an income statement for management.) HI-TEK LABS Income Statement For the Month Ended May 31. and for overhead the controllable and volume variances.000.

$ 6363 .