Author Question: Brahma manufactures western hats. The company prepares flexible budgets and uses a standard cost ... (Read 91 times)

lbcchick · **on:** Jan 5, 2020

Brahma manufactures western hats. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a hat is based on the static budget volume of 20,000 hats per month:

Direct materials (2.5 m2 × $5.00 per m2)

$12.00

Direct labour (2 hours × $15 per hour)

30.00

Manufacturing overhead:

Variable (2 hours × $2.50 per hour).

$5.00

Fixed (2 hours × $3.75 per hour)

7.50

12.50

Total cost per hat.

$54.50

Data for January of the current year include the following:

a.	Actual production was 22,000 hats.

b.	Actual direct materials purchased and used was 2.70 m2 per hat at an actual cost of $4.90 per

m2.

c.	Actual direct labour usage of 45,500 hours cost $659,750.

d.	Total actual overhead cost was $290,000.

Required:

1.	Compute the price and efficiency variances for direct materials and direct labour.

2.	For manufacturing overhead, compute the total variance, the flexible budget variance, and the

production volume variance.

ApricotDream · **Reply #1 on:** Jan 5, 2020

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 32% of students answer this correctly