Weslaco Company Has Made the Following Information Available for Its $1.5$

question 5

Essay

Weslaco Company has made the following information available for its production facility for the current month.Fixed overhead was estimated at 19,000 machine hours for the production cycle.Actual machine hours for the period were 18,900,which generated 3,900 units.

Material purchased (80,000 pieces)	$314,000
Material quantity variance	$6,400 U
Machine hours used (18,900 hours)
VOH spending variance	$50 U
Actual fixed overhead	$60,000
Actual labor cost	$40,120
Actual labor hours	5,900

Weslaco Company's standard costs are as follows:
Directmaterind                          20 pieces@$4 per piece
Directiaberi                               $1.5$ horssed @$ 6 per hour
Variable overhead
(applied on a mechine hour basis)   4.8hours @ $\$ 2.50$ per hour
Fixed overhead
(applied on a machine hour basis)       $4.8$ hours@ $\$ 3$ per hour
Determine the following items:
a. material purchase price variance
b. standard quantity allowed for material
c. total standard cost of material allowed
d. actual quantity of material used.
e. labor rate variance
f. standard hours allowe for labor
g. total standard cost of labor allowed
h. labor efficiency variance
i. actual variable overhead incured
j. standard machine hours allowed.
k. variable overhead efficiency variance
l. budgeted fixed overhead
m. applied fixed overhead
n. fixed overhead spending variance
o. volume variance
p. total overhead variance

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