ACC - Anton Company manufactures wooden magazine stands

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Anton Company manufactures wooden magazine stands. An accountant for Anton just completed the variance report for the current month. After printing the report, his computer's hard drive crashed, effectively destroying most of the actual results for the month. All that the accountant remembers is that actual production was 220 stands and that all materials purchased were used in production. The following information is also available:

Current Month: Budgeted Amounts 
Budgeted production: 200 magazine stands 
Direct materials: Wood 
Usage 3 square feet per stand 
Price $ 0.25 per square foot 
Direct labor: 
Usage 0.5 hours per stand 
Price $ 10 per hour 
Variable overhead (allocated based on direct labor hours): 
Rate per labor hour $ 4 
Rate per stand $ 2 
Fixed overhead (allocated based on direct labor hours): 
Rate per labor hour $ 6 
Rate per stand $ 3 

Current Month: Variances 
Direct materials price variance $ 33 Unfavorable 
Direct materials quantity variance -0- 
Direct labor rate variance $ 231 Favorable 
Direct labor efficiency variance $ 550 Unfavorable 
Overhead volume variance $ 60 Favorable 
Overhead spending variance $ 210 Unfavorable 

a. What was the actual purchase price per square foot of wood? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Actual price $ per square foot _______________

b. How many labor hours did it actually take to produce each stand? (Round your answer to 2 decimal places.)
Actual hours per unit hours per unit _________________
c. What was the actual wage rate paid per hour? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Actual rate per hour $ per hour ______________
d. What was actual total overhead for the month? (Omit the "$" sign in your response.)
Actual overhead costs $ __________________

    • 13 years ago
    ACC - Anton Company manufactures wooden magazine stands (SOLUTION)
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