Question

$36 The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $18.00/lb.) Actual (4,200 lb. @ $19/lb.) $79,800 Direct labore Standard (0.5 hr. @ $33/hr.) $16.50 Actual (950 hrs. @ $32.20/hr.) 30,590 Variable overhead Standard (0.5 hr. @ $15/hr.) $7.50 Actual 15,450 Total $60 $125,840

Answer 1

Material Variances
Actual Cost		$79,800
Split Cost		$7,800	U
Standard Cost		$72,000
Material Price Variance	(Std Price-Actual Price) * Actual Qty (18-19)*4,200	$4,200	U
Material Efficency Variance	(Std Qty-Actual Qty)* Std Price (4,000-4,200)*18	$3,600	U
Total Variance		$7,800	U

Total Standard Cost = $60 * 2000 = 120,000

Total Actual Cost = 125,840

Total Variance = 5,840 U

Material Variance = 7,800 U

Labor Variance = 2,410 F

Overhead Variance = 450 U

Total Variance = 5,840 U