At the Beginning of the Year,Goodman Company Had the Following

question 25

Essay

At the beginning of the year,Goodman Company had the following standard cost sheet for one of its food products:
Goodman computes its overhead rates using practical volume,which is 72,000 units.The actual results for the year are:
$$\begin{array} { l r } \text { Direct materials (10 kg } @ 3.20 \text { per kilogram) } & \$ 32.00 \\\text { Direct labour (4 hours } @ \$ 9.00 \text { per hour) } & 36.00 \\\text { Fixed overhead (4 hours } @ \$ 4.00 \text { per hour) } & 16.00 \\\text { Variable overhead (4 hours } @ , \$ 0.75 \text { per hour) } & 3.00 \\\text { Standard cost per unit } & \$ 87.00\end{array}$$ $$\begin{array} { l r } \text { Units produced } & 70,000 \\\text { Direct labour hours } & 290,000 \\\text { Actual wage per hour } & \$ 9.05 \\\text { Fixed overhead } & \$ 1,160,000 \\\text { Variable overhead } & \$ 218,000\end{array}$$ A. Compute the fixed overhead spending and volume vari ances.
B. Compute the variable overhead spending and efficiency variances.

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Definitions:

Modus Ponens (MP)

A valid form of argument where if a conditional statement ("if p then q") is accepted, and the antecedent (p) is true, then the consequent (q) must also be true.

Modus Tollens (MT)

A form of logical argument where, from "If P then Q" and "Not Q," it follows that "Not P."

Atomic Sentences

Simple sentences that cannot be divided into smaller meaningful elements within a logical structure.

Truth Table

A diagram in logic used to determine the validity of a proposition by listing all possible scenarios and their outcomes.