Question:
Brewster Company produces a product that requires four standard pounds per unit. The standard price is $6.80 per pound. If 1,500 units required 6,400 pounds, which were purchased at $6.50 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance?
Brewster Company produces a product that requires 1.5 standard hours per unit at a standard hourly rate of $15 per hour. If 1,500 units required 2,100 hours at an hourly rate of $15.50 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance?
Brewster Company produced 1,500 units of product that required 1.5 standard hours per unit. The standard variable overhead cost per unit is $1.70 per hour. The actual variable factory overhead was $3,900. Determine the variable factory overhead controllable variance.
Brewster Company produced 1,500 units of product that required 1.5 standard hours per unit. The standard fixed overhead cost per unit is $0.50 per hour at 2,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.
Prepare an income statement through gross profit for Brewster Company. Assume Brewster sold 1,500 units at $80 per unit.