Question

Please assist with finding the variable and show how you got the answer. Thank you

A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(5 lbs. @ $8 per lb.)		42,100	lbs. @ $8.10 per lb.
Direct labor	(2 hrs. @ $16 per hr.)		16,400	hrs. @ $16.50 per hr.
Overhead	(2 hrs. @ $11 per hr.)	$	188,500
Units manufactured			8,300

(2) Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable.

Answer 1

* Material voulances in Reice vaiance - AQ*(SP-AP) AQ - Actual Quantity: 42,100 42,100x (8-8.10) SQ - Standud Qty = 4,500 42.100*(-DIO) APE Actual price - 8:10 - 64210) (unfavorable) SP- Standud puice. 8.00 Quanly variance - SPX (SQ-AQ) 8x ( 41,500 -42,100) - 8XC-6oo) - 4800(Antavourable) Mateu al cost vacance - SQxSP - AQXAP 41,500X8 - 42,100 x 8-10 3,82.000 - 3,41010 = 9010 ( un tavocable) * labouu vauiances : Puece variance -AHX SR-AR) 16,400x (16-16-5) - 16,400x (-0.6) +8200 (untavelable) AH: Actuai hocus: 16,400 SH-S-landud hrs - 16,600 SR Stancoud wate = 16 AR- Actual uate 16.5

fatticeroy variance SRC SH-AH) - 16x(16,600 - 16,400) - 16x(200) - 8200 (tavouable) labocu cosi V ance - 8HXSR - AUKAR - 16.600x16 - 16400x 16.5 - 265,600 - 270,600 5000 funfavouable) Ovesheod * lacobus Vuiance labore chtrecerealene Rot Ovechead labete Cost Vasiana - standud - Actual = 182.600 - 188,500 (8300x2x) - 5900(unfavourable) * Total Cost variance Material cost vorance - 9010 (untavouable About ODBI. variance 5000 (entavouable) Overhead cost cance - 5900 (untacowable) fofal cost variance - 19,910 Cunfallowable)