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    ACC 206 WEEK 4 ASSIGNMENT 3

    ACC 206 WEEK 4 Straightforward variance analysis 
    Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows.
    Direct materials: 4 units @ $6.50 		$26.00 
    Direct labor: 8 hours @ $8.50 		68
    Variable factory overhead: 8 hours	@ $7.00 	56
    Fixed factory overhead: 8 hours 	@ 2.5	20
    Total standard cost per unit 		$170.00 
    
    The following information pertains to activity for December: 
    1.	Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations. 
    2.	Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity. 
    3.	Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year. 
    4.	Actual production amounted to 6,500 completed units. 
    
    Instructions: 
    a.	Compute Arrow's direct material variances. 
    b.	Compute Arrow's direct labor variances. 
    Factory Overhead Variances:
    c.	Compute Arrow's variances for factory overhead.
    

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  1. ACC 206 WEEK 4 ASSIGNMENT 3ACC 206 WEEK 4 ASSIGNMENT 3ACC 206 WEEK 4 ASSIGNMENT 3ACC 206 WEEK 4 ASSIGNMENT 3ACC 206 WEEK 4 ASSIGNMENT 3ACC 206 WEEK 4 ASSIGNMENT 3
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