The Moore Company Produces and Sells a Single Product The Company Manufactured and Sold 18,000 Units of Product During

question 66

Essay

The Moore Company produces and sells a single product.A standard cost card for the product follows:
Standard Cost Card-per unit of product: $\begin{array}{lrr}\text { Direct materials, } 4 \text { yards at } \$ 4.00 \text { per yard .......... } & \$ 16.00 \\\text { Direct labor, 1.5 hours at } \$ 10.00 \text { per hour .......... } & 15.00 \\\text { Variable overhead, 1.5 hours at } \$ 3.00 \text { per hour ..... } & 4.50 \\\text { Fixed overhead, 1.5 hours at } \$ 7.00 \text { per hour......... } &\underline{ 10.50 }\\\text { Standard cost per unit............................ } &\underline{ \$ 46.00}\end{array}$ The company manufactured and sold 18,000 units of product during the year.A total of 70,200 yards of material was purchased during the year at cost of $4.20 per yard.All of this material was used to manufacture the 18,000 units.The company records showed no beginning or ending inventories for the year.
The company worked 29,250 direct labor-hours during the year at a cost of $9.75 per hour.Overhead cost is applied to products on the basis of standard direct labor-hours.The denominator activity level (direct labor-hours)was 22,500 hours.Budgeted fixed manufacturing overhead costs as shown on the flexible budget were $157,500,while actual fixed manufacturing overhead costs were $156,000.Actual variable overhead costs were $90,000.
Required:
a.Compute the direct materials price and quantity variances for the year.
b.Compute the direct labor rate and efficiency variances for the year.
c.Compute the variable overhead rate and efficiency variances for the year.
d.Compute the fixed manufacturing overhead budget and volume variances for the year.

---

Definitions:

Pressure Flow

A hypothesis explaining the process by which sugars are transported in the phloem of plants from sources to sinks.

Active Transport

The movement of molecules across cell membranes from lower to higher concentration, requiring energy.

Phytoremediation

The use of plants to remove, degrade, or contain environmental pollutants from contaminated soil, water, or air.

Hydrogen Bonds

Weak bonds between partially positively charged hydrogen atoms and other partially negatively charged atoms, significant in the structure of water and biological molecules.