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9.The Jurcevich Corporation manufactures and sells a single product. A
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# Question : 9.The Jurcevich Corporation manufactures and sells a single product. A : 1416272

9.The Jurcevich Corporation manufactures and sells a single product. A standard cost system is used by the company.  The standard factory overhead cost for a unit of product is as follows:

Variable overhead (1.5 hours @ \$3 per hour)4.50

Fixed overhead (1.5 hours @ \$1 per hour)1.50

Total standard cost per unit\$6.00

The overhead cost per unit was calculated for the year based on a 60,000 unit volume as follows:

Indirect labor (30,000 hours @ \$8)\$240,000

Factory supplies (60,000 gallons of oil @ \$.80 per gallon)48,000

Allocated variable service costs from other departments12,000

Total variable costs\$300,000

Supervision\$ 28,000

Depreciation50,000

Other fixed costs12,000

Total annual factory overhead budget for 60,000 units\$390,000

The charges to the manufacturing department for April are given below for the 5,200 units produced:

Indirect labor (2,400 hrs. @ \$8.15 per hr.)\$19,560

Factory supplies (6,000 gallons @ \$.55)3,300

Allocated variable service department costs3,200

Supervision2,490

Depreciation3,750

Other fixed costs1,000

Total\$33,300

(a)  Assuming Jurcevich uses the two-variance method of analyzing factory overhead, calculate the following variances from standard cost:

(b)  Prepare the journal entry to apply factory overhead to work in process and record the variances.

10.Palek Company has adopted the following standards:

Input  Total

Direct materials3 lbs. @ \$3.60 per lb.\$10.80

Direct labor5 hrs. @ \$12.00 per hr.60.00

Variable\$4.00 per direct labor hour20.00

Fixed\$5.00 per direct labor hour25.0045.00

Standard cost per unit\$115.50

Palek's January budget was based on normal volume of 40,000 standard labor hours.  During January, Palek produced 7,900 units with records indicating the following data:

Direct materials purchased25,000lbs. @ \$3.65

Direct materials used23,400lbs.

Direct labor39,900hrs. @ \$11.85

Assuming Palek uses the four-variance method of analyzing factory overhead, compute the following variances for the month of January and indicate whether each is favorable or unfavorable: