Managerial Accounting Help
robn_a
chapter_eleven_assignment.docxPart One (10 points)
Standard Gears produces lawn mower gears. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system:
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Actual Data |
|
Budgeted and Standard Data |
||
|
Produced |
12,400 units |
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Budgeted units |
12,500 units |
|
Materials purchased |
4,650 lbs. for a total cost of $32,550 |
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Budgeted materials |
0.40 lb. @ $7.10 per lb. |
|
Materials used |
4,700 lbs. |
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Budgeted labor |
36 minutes @ $11.00 per hour |
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Labor worked |
7,460 hrs. costing $79,822 |
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Budgeted variable overhead |
$35,625 |
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Actual overhead |
Fixed: $84,800 Variable $36,100 |
|
Budgeted fixed overhead |
$85,500 |
How much is the standard cost of each lawn mower gear?
Part Two (10 points)
Provide BOTH the direct material quantity and price variances for Standard Gears (info in table above).
