Becton labs, inc., produces various chemical compounds for industrial use. one compound, called fludex, is prepared using an elaborate distilling process. the company has developed standard costs for one unit of fludex, as follows:

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Business

Bogey

6 March, 13:27

Becton labs, inc., produces various chemical compounds for industrial use. one compound, called fludex, is prepared using an elaborate distilling process. the company has developed standard costs for one unit of fludex, as follows:

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Andreas Orr · Answer 1

The company has developed standard costs for one unit of fludex, as follows: During November, the following activity was recorded relative to production of fludex.

Explanation:

1) Real Price in Material Price Variance = 225000/12000 = 18.75

2) Standard Quantity in Material Quantity Variance = 3750*2.5 = 9375

3) Real Quantity in Material Quantity Variance = 12000 - 2500 = 9500

4) Real Hours in Labor Rate Variance/Labor efficiency Variance = 35*160 = 5600

5) Common Hours in Labor efficiency Variance/Variable Overhead efficiency Variance = 1.4*3750 = 5250

6) Real Rate in Variable Overhead Rate Variance = 18200/5600 = 3.25