Answer:
$44
Explanation:
Given that
Direct material cost = $17
Direct labor cost = $10
Variable manufacturing overhead = $17
The computation of unit product cost using variable costing is shown below:-
Unit product cost = Direct material cost + Direct labor cost + Variable manufacturing overhead
= $17 per unit + $10 per unit + $17 per unit
= $44
Therefore for computing the unit product cost we simply added the direct material cost, direct labor cost and variable manufacturing overhead.
Answer:
$6,655
Explanation:
Variable cost per bag = $3.70
Total fixed cost = $10,000
Unit selling price before further processing = $9.05
No of bags = 10,000
Contribution per bag = 9.05-3.7 = $5.35
Total revenue = 9.05*10,000= $90,500
Net income =90500-(10,000+37000 )= 43500
Incremental cost =2100
Incremental revenue( 10,000*8.05) + (3100*6.05)
80500 + 18755 = $99255
Net income = 99255 - (2100+47000)= 50155
Financial advantage = 50155-43500=6655
Answer:
Variable overhead rate variance = Actual Variable overhead incurred - Actual Hours of Input, at Standard Rate
Variable overhead rate variance = ($4.5*18800 - $77,700)
Variable overhead rate variance = $6,900 Favorable
Variable overhead efficiency variance = Actual Hours of Input, at Standard Rate - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead efficiency variance = (12000*1.5 - $18,800)*$4.5 =
Variable overhead efficiency variance = $3,600 Unfavorable
Variable overhead cost variance = Actual Variable overhead incurred - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead cost variance = (12000*1.5*$4.5) - $77,700
Variable overhead cost variance = $3,300 Favorable
