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Bramble Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-2 pound plastic at $6 per pound Direct labor-10 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (10,330 pounds) Direct labor (5,000 hours) Variable overhead Fixed overhead Total manufacturing costs Show Transcribed Text The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,200 direct labor hours (5.200 units) for the month. The master budget showed total variable overhead costs of $36,400 ($7.00 per hour) and total fixed overhead costs of $36,400 ($7.00 per hour). Actual costs for October in producing 5.100 units were as follows. $64,046 61.000 52.122 21,578 $198.746 Overhead controllable variance S Overhead volume variance $12.00 12.00 7.00 7.00 $ $38.00 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. 3

Bramble Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-2 pound plastic at $6 per pound Direct labor-10 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (10,330 pounds) Direct labor (5,000 hours) Variable overhead Fixed overhead Total manufacturing costs Show Transcribed Text The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,200 direct labor hours (5.200 units) for the month. The master budget showed total variable overhead costs of $36,400 ($7.00 per hour) and total fixed overhead costs of $36,400 ($7.00 per hour). Actual costs for October in producing 5.100 units were as follows. $64,046 61.000 52.122 21,578 $198.746 Overhead controllable variance S Overhead volume variance $12.00 12.00 7.00 7.00 $ $38.00 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. 3

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...
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Bramble Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-2 pound plastic at $6 per pound Direct labor-1.0 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (10,330 pounds) Direct labor (5,000 hours) Variable overhead Fixed overhead Total manufacturing costs Show Transcribed Text $64,046 61.000 52.122 21,578 The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,200 direct labor hours (5.200 units) for the month. The master budget showed total variable overhead costs of $36,400 ($7.00 per hour) and total fixed overhead costs of $36,400 ($7.00 per hour) Actual costs for October in producing 5.100 units were as follows. $198.746 Overhead volume variance Overhead controllable variance $ $12.00 12.00 $ 7.00 7.00 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. $38.00
Transcribed Image Text:Bramble Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-2 pound plastic at $6 per pound Direct labor-1.0 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (10,330 pounds) Direct labor (5,000 hours) Variable overhead Fixed overhead Total manufacturing costs Show Transcribed Text $64,046 61.000 52.122 21,578 The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,200 direct labor hours (5.200 units) for the month. The master budget showed total variable overhead costs of $36,400 ($7.00 per hour) and total fixed overhead costs of $36,400 ($7.00 per hour) Actual costs for October in producing 5.100 units were as follows. $198.746 Overhead volume variance Overhead controllable variance $ $12.00 12.00 $ 7.00 7.00 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. $38.00
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