Standerd Prime cost per unit | |||||
Material | Rate | Standerd Cost per unit | |||
RM1 | 2LB | $ 1.60 | $ 3.20 | ||
RM2 | 3GAL | $ 2.25 | $ 6.75 | ||
Labor | |||||
General | 0.4 hr | $ 2.25 | $ 0.90 | ||
Skilled | 0.2 hr | $ 2.10 | $ 0.42 | ||
Prime Cost=Raw Materials+Direct Labor |
|||||
(a) | Standerd Prime Cost per unit | $ 11.27 | |||
Actual Prime cost per unit | |||||
Material | Rate | Actual Cost per for 10,000unit | Actual Cost per unit | ||
RM1 | 21000 LB | $ 1.55 | $ 32,550.00 | $ 3.26 | |
RM2 | 29500 GAL | $ 2.10 | $ 61,950.00 | $ 6.20 | |
Labor | |||||
General | 4200 hr | $ 4.90 | $ 20,580.00 | $ 2.06 | |
Skilled | 2100 hr | $ 8.20 | $ 17,220.00 | $ 1.72 | |
Prime Cost=Raw Materials+Direct Labor |
|||||
(b) | Actual Prime Cost per unit | $ 13.23 | |||
(C) Direct Material Variance Analysis | |||||
Direct materials price variance = (SP – AP) x AQ | |||||
Material | Actual Cost per unit | Standerd Cost per unit | Direct materi Variance 10000 units | ||
RM1 | $ 3.26 | $ 3.20 | $ (550.00) | Un Favorable | |
RM2 | $ 6.20 | $ 6.75 | $ 5,550.00 | Favorable | |
$ 5,000.00 | Favorable | ||||
(D) Direct Labor Variance Analysis | |||||
Material | Actual Cost per unit | Standerd Cost per unit | Direct materi Variance 10000 units | ||
General | $ 2.06 | $ 0.90 | $ (11,580.00) | Un Favorable | |
Skilled | $ 1.72 | $ 0.42 | $ (13,020.00) | Un Favorable | |
$ (24,600.00) | Un Favorable |
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