The Garson Company manufactures roofing shingles. The production process involves heating and compressing asphalt into sheets and then rolling coarse sand into the hot asphalt. The sheets are then cooled, cut into shingles, and packaged.
The following standard costs were developed: The following information is available regarding the company's operations for the period. Budgeted fixed manufacturing overhead for the period is $60,000 and the standard fixed overhead rate is based on expected capacity of 6,000 direct labour hours.
a. Calculate the standard fixed manufacturing overhead rate.
b. Complete the standard cost card for roofing shingles.
c. Calculate the following variances:

Question

The Garson Company manufactures roofing shingles. The production process involves heating and compressing asphalt into sheets and then rolling coarse sand into the hot asphalt. The sheets are then cooled, cut into shingles, and packaged.
The following standard costs were developed:  The following information is available regarding the company's operations for the period.  Budgeted fixed manufacturing overhead for the period is $60,000 and the standard fixed overhead rate is based on expected capacity of 6,000 direct labour hours.
a. Calculate the standard fixed manufacturing overhead rate.
b. Complete the standard cost card for roofing shingles.
c. Calculate the following variances:

Quizplus · Accepted Answer

The Answer of The Garson Company manufactures roofing shingles. The production process involves heating and compressing asphalt into sheets and then rolling coarse sand into the hot asphalt. The sheets are then cooled, cut into shingles, and packaged.
The following standard costs were developed:  The following information is available regarding the company's operations for the period.  Budgeted fixed manufacturing overhead for the period is $60,000 and the standard fixed overhead rate is based on expected capacity of 6,000 direct labour hours.
a. Calculate the standard fixed manufacturing overhead rate.
b. Complete the standard cost card for roofing shingles.
c. Calculate the following variances:

The Garson Company Manufactures Roofing Shingles