Question

Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. @ $8 per lb.) (3 hrs. @ $16 per hr.) (3 hrs. @ $12 per hr.) Actual 49,000 lbs. @ $8.10 per lb. 23,900 hrs. @ $16.50 per hr. $297,500 8,100 (1) Compute the standard cost per unit. Direct materials Direct labor Overhead Total (2) Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable. Total cost variance

Answer 1

Data for calculation of variance:- standard. Actual uniss. for 8, 100 units standard post for 8,100 units Rate total units Nial. Rate units Rate Total material 6 88 448 48,600 $388,800 49,000lbs. 88.10 396,900 Labor & $16 48 24,300 $16 388,800 23,900 $16.50 394,350. Overhead 3 $12 36 24,300 912 291,600 23,900 12.45 $297,500 $1,069,200 31,088,750 1 stand and cost for 8,100 units & matchal units Rate To tal. total cost variance = standard cost - Actual cost 481600lbs. 18 $388,800. => $1;069,200 - $1,088,750 24,300 916 388,800 = 19,550 = Unfavourable 24,300 291,600 (4,900) material ($8-8.10)x 49,000 unfavourable Price variance = (SP-AP) X AQ = material Quantity variance - (SQ-AQ) x SP = (48,600-49,000) x 88 = (3,200) = unfavourable labur Rate variance = CSR-AR) XAH (16-16.50) × 23,900 (11,950) - unfavourable - Efficieny variance (SH-AH) X SR (24,300 - 23,900) × $16 = 6,400 = favourable labor

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