Dillard, Inc

question 143

Essay

Dillard, Inc., has developed the following standard cost data based on a denominator volume of 60,000 direct labor hours (DLHs). Budgeted fixed overhead is $360,000 and budgeted variable overhead is $180,000 at this level of activity.Required:
Determine (to the nearest dollar each) all variances for direct materials, direct labor, and factory overhead. Use a 4-variance breakdown (decomposition) of the total overhead variance for the period. Assume that the direct materials price variance is calculated at point of production, not point of purchase. Note: this problem requires knowledge from Chapter 14.

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Definitions:

Iron Ore

A natural resource that is mined and processed to extract iron, used primarily in the production of steel.

Factors Of Production

The resources needed for the production of goods and services, typically including land, labor, capital, and entrepreneurship.

Raw Materials

Basic material from which a product is made, often used in manufacturing and production processes.

Cement Industry

A sector of the economy focused on the production and sale of cement, a key ingredient in construction.