Acc346 Managerial Accounting: P11-2A Dinkel Manufacturing Corporation accumulates

Acc346 Managerial Accounting 
P11-2A                                   


Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2008.                          


Costs and Production Data     Actual Standard        


Raw materials unit cost           2.25     2.00   


Raw materials units used        10,600 10,000


Direct labor payroll     122,400           120,000          


Direct labor hours worked      14,400 15,000


Manufacturing overhead incurred      184,500                      


Manufacturing overhead applied                    189,000          


Machine hours expected to be used at normal capacity                     42,500


Budgeted fixed overhead for June                 51,000


Variable overhead rate per hour                      3.00   


Fixed overhead rate per hour              1.20   


Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.                                 


Instructions:


a.  Compute all of the variances for (1) direct materials and (2) direct labor.           


b.  Compute the total overhead variance.


c.  Prepare an income statement for management. Ignore income taxes. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.  For negative numbers use either a negative sign preceding the number eg -45 or parentheses eg (45).)
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