Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.7 ounces $ 2.00 per ounce $ 13.40 Direct labor 0.3 hours $ 14.00 per hour $ 4.20 Variable overhead 0.3 hours $ 2.00 per hour $ .60 The company reported the following results concerning this product in February. Originally budgeted output 5,300 units Actual output 8,100 units Raw materials used in production 30,400 ounces Actual direct labor-hours 1,940 hours Purchases of raw materials 32,800 ounces Actual price of raw materials $ 52.90 per ounce Actual direct labor rate $ 62.40 per hour Actual variable overhead rate $ 1.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for February is:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
TB MC Qu. 10-155 (Algo) Majer Corporation makes a product with ...
Majer Corporation makes a product with the following
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||
|---|---|---|---|---|---|
| Direct materials | 6.7 | ounces | $ 2.00 | per ounce | $ 13.40 |
| Direct labor | 0.3 | hours | $ 14.00 | per hour | $ 4.20 |
| Variable |
0.3 | hours | $ 2.00 | per hour | $ .60 |
The company reported the following results concerning this product in February.
| Originally budgeted output | 5,300 | units |
|---|---|---|
| Actual output | 8,100 | units |
| Raw materials used in production | 30,400 | ounces |
| Actual direct labor-hours | 1,940 | hours |
| Purchases of raw materials | 32,800 | ounces |
| Actual price of raw materials | $ 52.90 | per ounce |
| Actual direct labor rate | $ 62.40 | per hour |
| Actual variable overhead rate | $ 1.10 | per hour |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The variable overhead rate variance for February is:
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