Purchase Solution

# Missing Numbers

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Your next-door neighbor recently began a new job as assistant controller for X Corporation. As her first assignment, she prepared a performance report for January. She was scheduled to present the report to managemnt the next morning, so she brought it home to review. The report was torn up by your dog and you can only read the following data:
X CORPORATION
Direct Direct Variable Fixed

standard allowed cost
given actual output........?...............?............................
(? kilograms (2 hours at
\$12 per hour) \$14 an hour)

Acutal Cost....................\$189,000..........?..........?.........?..
(14,000 kilos (8,800 hours
at \$13.50 per at?per hour)
kilo)
Direct-material price variance....?
Direct-material quantity variance.\$6,000 U
Direct-labor rate variance.......................\$8,800 U
Direct-labor efficiency variance.................2,800 F

In addition to the fragementary data still legible on the performance report, your neighbor happended to remember the following facts.
-planned porduction of X's sole product was 500 units more than actual production
-all of the direct material purchased in January was used in production
-There were no beginning or ending inventories
-Variable and fixed overhead are applied on the basis of direct-labor hours. The fixed overhead rate is \$4.00 per hour

Reconstruct the following facts:
1.planned production (in units)
2.Actual production (in units)
4.Total standard allowed direct-labor hours
5.actual direc-labor rate
8.tandard direct-material quantity per unit
9.direct-material price variance
I have my numbers but am not sure im using the right formulas i need to double check my work. Im using managerial accounting 7th edition, ronald hilton ch.11

##### Solution Summary

The solution explains how to calculate the missing numbers using variance analysis formula

##### Introduction to Finance

This quiz test introductory finance topics.