James Madison University Operations And Supply Chain Management Assignment Help - Raydom Company

Question - At the beginning of the year, Raydom Company had the following standard cost sheet for one of its
chemical products:
Direct materials (5 lbs. @ $6.40) ……………….$32.00
Direct labor (2 hrs. @ $18.00) …………………. 36.00
Fixed overhead (2 hrs. @ $4.00) ………………. 8.00
Variable overhead (2 hrs. @ $1.50) …………… 3.00
Standard cost per unit ………………………….$79.00
Raydom computes its overhead rates using practical volume, which is 144,000 units. The actual
results for the year are as follows:
a. Units produced: 140,000
b. Direct labor: 290,000 hours at $ ...Read More 9.05
c. Fixed overhead: $1,160,000
d. Variable overhead: $436,000

Required:
1. Compute the variable overhead spending and volume variances.
2. Compute the fixed overhead spending and efficiency variances. ...Read Less

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