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Exam 8 June 2017, questions

Asistensi AMB – Pertemuan 5 – Naura Rista Haniffah
University
Universitas Surabaya Problem 1 Harley Company produces engine parts for large motors. The company uses a standard
cost system for production costing and control. The standard cost sheet for one of its higher volume
Course products (a valve) is as follows:
Management Accounting
DM (7 pounds @$5.40) $ 37.80
DL (1.75 hrs @$18) $ 31.50
Listed books
Variable MOH (1.75 hrs @$4.00) $ 7.00
Marketing-Management: Märkte, Fixed MOH (1.75 hrs @$3.00) $ 5.25
$ 81.55
Marktinformationen und Marktbearbeit
During the year, Harley had the following activity related to valve production:
a) Actual production of valves totaled 20.600 units
Helpful? 2 0 b) A total of 135.400 pounds of DM was purchased and used at $5.36 per pound.
c) There were no beginning and ending inventory of DM.
d) The company uses 36.500 direct labor hours at a total cost of $656.270
e) Actual fixed overhead totaled $110.000
Report Document f) Actual variable overhead totaled $168.000

Harley produces all of its valves in a single plant. Budgeted production is 20.000 units. Standard
overhead rates are computed based on normal activity measured in standard direct labor hours.
Share Required:
1. Compute the DM price and usage variances
2. Compute the DL rate and efficiency variances
3. Compute the Variable MOH rate and efficiency variances
Comments 4. Compute the Fixed MOH rate and volume variances