Financial and Managerial Accounting: PR22-3A Gulf Coast Resins Company processes a base chemical

Financial and Managerial Accounting P
ROBLEM 22-3A Direct materials, direct labor, and factory overhead cost variance analysis
Gulf Coast Resins Company processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,600 units of product were as follows: Standard Costs Actual Costs Direct materials 6,850 pounds at $6.40 7,000 pounds at $6.35 Direct labor 2,050 hours at $19.80 2,100 hours at $20.20 Factory overhead Rate per direct labor hour, based on 100% of normal capacity of 1,950 direct labor hours: Variable cost, $2.50 $4,970 variable cost Fixed cost, $4.50 $8,775 fixed cost Each unit requires 0.6 hour of direct labor. Enter favorable variances with a minus sign: (example -1234)

Instructions:
a. Determine the price variance, quantity variance, and total direct materials cost variance.
b. Determine the rate variance, time variance, and total direct labor cost variance. c. Determine variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.
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