Question

Chillco Corporation produces containers of frozen food. During April, Chillco produced 790 cases of food and incurred the following actual costs.
Variable overhead $7,000
Fixed overhead 21,600
Actual labor cost(4,500 direct-labor hours) 93,150
Actual material cost (12,500 pounds purchased and used) 27,500

Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows:

Standard Costs per Case Direct labor (5 hours at $20 per hour) $100.00
Direct material (15 pounds at $1.90 per pound) 28.50
Variable overhead (5 direct-labor hours at $1.60 per hour) 8.00
Fixed overhead (5 direct-labor hours at $3 per hour) 15.00
Total $151.50

Annual Budget Information

Variable overhead $80,000
Fixed overhead $150,000
Planned activity for year 50,000 direct-labor hours

Required:
a. Prepare as complete an analysis of cost variances as is possible from the available data.
b. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: the standard rates were $17.50 per hour for direct labor, and $1.60 per direct- labor hour for variable overhead.

Answer 1

Answer:I'm figuring this out for you!

Explanation: