Question

Variance Analysis Insert a formula into each cell containing a ?. Chatham Company produces a beach towel and incurs the following variable manufacturing costs: Std Qty Std Price/Rate Direct material (cloth) Direct labor Variable O/H (based on direct labor hours) 3 yds 0.75 hours 0.75 hours $ $ $ 1.80 per yd 12.00 per hour 4.00 per hour Standard Cost per Unit: Std Cost per towel Direct Material 5 Direct Labor 5 Variable O/H - Total Std Cost per Unit Chatham incurred the following variable manufacturing costs in April: Units produced 600 Actual Cost 5 Direct materials Direct labor Variable O/H Total Actual cost Actual Qty 1920 440 440 yds hours hours Actual Price/Rate $1.40 per yd $11.60 per hour $4.90 per hour 5 5

Answer 1

			Std Qty		Std Price/Rate
Direct Material (cloth)			3	yds	$           1.80	per yd
Direct Labor			0.75	hours	$        12.00	per hour
Variable O/H			0.75	hours	$           4.00	per hour
Standard Cost per unit
	Std Cost per towel
Direct Material (cloth)	$      5.40	=D8*F8
Direct Labor	$      9.00	=D9*F9
Variable O/H	$      3.00	=D10*F10
Total Std Cost per unit	$   17.40
Units Produced	600
	Actual Qty		Actual price/rate		Actual cost
Direct Material (cloth)	1920	yds	$      1.80	per yd	$   3,456.00	=B23*D23
Direct Labor	440	hours	$   12.00	per hour	$   5,280.00	=B24*D24
Variable O/H	440	hours	$      4.00	per hour	$   1,760.00	=B25*D25
Total Actual Cost					$ 10,496.00