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School

Collin County Community College District *

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Course

3300

Subject

Accounting

Date

Feb 20, 2024

Type

png

Pages

1

Uploaded by DukeCapybara1468 on coursehero.com

Problem 11-49 Complete Analysis of Cost Variances; Review of Chapters 10 and 11 (LO 11-5) Ice Box Gourmet, Inc., produces containers of frozen food. During April, The company produced 775 cases of food and incurred the following actual costs. Variable overhead $ 6,700 Fixed overhead 10,300 Actual labor cost (3,000 direct-labor hours) 46,200 Actual material cost (16,500 pounds purchased and 31 350 used) ' Overhead is budgeted and applied using direct-labor hours. Standard cost and annual budget information are as follows: Standard Costs per Case Direct labor (3 hours at $15) $45.00 Direct material (20 pounds at $1.60) 32.00 Variable overhead (3 hours at $2.40) 7.20 Fixed overhead (3 hours at $4) 12.00 Total $96.20 Annual Budget Information Variable overhead $ 72,000 Fixed overhead $120,000 Planned activity for year 30,000 direct-labor hours Required: 1. Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable” or "Unfavorable”. Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations. Round "Variable-overhead efficiency variance" to 2 decimal places.) Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance Variable-overhead spending variance $ 1,120 Unfavorable Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance
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