A review of accounting records for last year disclosed the following selected information Variable costs:

1.      A review of accounting records for last year disclosed the following selected information                                                                                                                              

Variable costs:                                                                  

Direct materials used     36,000                                                

Direct labor         6,000                                                   

Manufacturing overhead              40,000                                                

Selling costs        32,000                                                

Fixed costs:                                                                        

Manufacturing overhead              310,000                                                              

Selling costs        115,000                                                              

Administrative costs       65,000                                                                                                                

In addition, the company suffered a $13,600 uninsured factory fire loss during the year. What were the product costs and period costs for last year using absorption costing? 

2.      A corporation manufactures a specialty line of dresses using a job-order costing system. During January, the following costs were incurred in completing job J-1:

Direct labor                        26,500

Direct materials                   9,938

Administrative costs                        2,725

Selling costs                         7,453               

Factory overhead was applied at the rate of $27 per direct labor hour, and job J-1 required 331 direct labor hours. If job J-1 resulted in 2,208 good dresses, the cost of goods sold per unit is:

3.      A cost accountant is developing departmental factory overhead application rates for the company's tooling and fabricating departments. The budgeted overhead for each department and the data for one job are shown below.

Department:                                                     Tooling       Fabricating                                 

Supplies                                                               1,073    275                                      

Supervisor's salaries                                       1,925    1,980                                   

Indirect labor                                                     1,485    5,720                                   

Depreciation                                                      880       6,820                                   

Repairs                                                               4,362     3,795                                   

Total budgeted overhead                             9,725    18,590                                

Total direct labor hours                               468        666                                      

Direct labor hours on Job #231                   12          6                                           

Using the departmental overhead application rates, total overhead applied to Job #231 in the Tooling and Fabricating Departments will be                                                                      

5.      The static budget for the month of May was for 9,500 units with direct materials at $17 per unit. Direct labor was budgeted at 35 minutes per unit for a total of $133,000. Actual output for the month was 8,700 units with $147,900 in direct materials and $139,200 in direct labor expense. The direct labor standard of 35 minutes was maintained throughout the month.                                                                                

Determine whether a favorable or unfavorable variance occurred and what caused it.                                                                    

Answer:                                              

Favorable/Unfavorable                                                

Answer:                                              

Amount                                                              

                          show working