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Maple Leaf Production manufactures truck tires The following information is available for the last operating period Maple Leaf produced and sold 92,000 tires for $40 each Budgeted production was

Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. • Maple Leaf produced and sold 92,000 tires for $40 each. Budgeted production was 100,000 tires. • Standard variable costs per tire follow: Direct materials: 4 pounds at $2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8.00 Direct labor: 0.4 hours at $18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.20 Variable production overhead: 0.18 machine-hours at $10 per hour . . . . 1.80 Total variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17.00 • Fixed production overhead costs: Monthly budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,350,000 • Fixed overhead is applied at the rate of $15 per tire. • Actual production costs: Direct materials purchased and used: 384,000 pounds at $1.80. . . . . $ 691,200 Direct labor: 35,200 hours at $18.40. . . . . . . . . . . . . . . . . . . . . . . . . . 647,680 Variable overhead: 17,280 machine-hours at $10.20 per hour. . . . . . . 176,256 Fixed overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,360,000 Required a. Prepare a cost variance analysis for each variable cost for Maple Leaf Productions. b. Prepare a fixed overhead cost variance analysis. 

Apr 24 2020 View more View Less

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