Flagstaff Inc. uses standard costing for its one product baseball bats. The standards call for 3 board-feet of wood at $1.40 per board-foot and 45 minutes of work at $12 per hour per bat. Total manufacturing overhead costs were estimated at $9450 of which the variable portion was $0.50 per bat and the fixed portion was $1.00 per bat with an estimate of 6300 bats to be produced. Flagstaff identifies price variances at the earliest possible point in time.
During March the company had the following results:
Direct labor used = 4800 hours at a cost of $56400
Actual manufacturing overhead fixed costs = $6000
Actual manufacturing overhead variable costs = $3100
Bats produced = 6000
Instructions
Compute the following variances for March.
1. Labor quantity variance
2. Total labor variance
3. Overhead controllable variance
4. Overhead volume variance

Question

Quizplus · Accepted Answer

The Answer of Flagstaff Inc. uses standard costing for its one product baseball bats. The standards call for 3 board-feet of wood at $1.40 per board-foot and 45 minutes of work at $12 per hour per bat. Total manufacturing overhead costs were estimated at $9450 of which the variable portion was $0.50 per bat and the fixed portion was $1.00 per bat with an estimate of 6300 bats to be produced. Flagstaff identifies price variances at the earliest possible point in time.
During March the company had the following results:
Direct labor used = 4800 hours at a cost of $56400
Actual manufacturing overhead fixed costs = $6000
Actual manufacturing overhead variable costs = $3100
Bats produced = 6000
Instructions
Compute the following variances for March.
1. Labor quantity variance
2. Total labor variance
3. Overhead controllable variance
4. Overhead volume variance