Question

Required information Use the following information for the Exercises below. 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. @ $9 per lb.) 3 hrs. @ $15 per hr.) (3 hrs. @ $12 per hr.) Actual 53,900 lbs. @ $9.20 per lb. 26,400 hrs. @ $15.40 per hr. $327,300 8,900

Answer 1

SQ = Actual units ( X ) Standard quantity per unit. Standard Qunatity = 8900 X 6 = 53400 Particulars Direct Material SQ 53400 SP 9.00 AQ AP 53900 $9.20 $ ==>> SQ X SP = $ 480,600 SQ = Standard Quantity for Actual output SP = Standard Price per Raw material AQ = Actual Quantiity consumed AP = Actual Price per Raw material

X AQ 53900 Actual Cost X X $495,880.00 AP $ 9.20 AQ 53900 SP 9.00 SQ 53400 Standard Cost X X $ 480,600.00 SP 9.00 $ $ $ 485,100.00 $(10,780.00) $ (4,500.00) Direct Material Price Variance Direct Material Qunatity Variance Total Direct Material Cost Variance $(10,780.00) Unfavorable $ (4,500.00) Unfavorable $(15,280.00) Unfavorable Direct Material Price Variance Direct Material Qunatity Variance Total Direct Material Cost Variance = (AQ * SP) - (AQ * AP) = (SQ * SP) - (AQ * SP) = ( SQ * SP) - (AQ * AP)

SH = Actual units (X) Standard hours per unit. Standard Hors = 8900 X 3 = 26700 SH AU AR Particulars Direct Labor SR 1 5 AH 2 6400 26700 15.4 ===>> SH X SR = 400500 SH = Standard Hours per Actual Output SR = Standard Rate per Hour AHP = Actual Hours Paid AR = Actual Rate per Hour.

Actual Cost X Standard Cost X х SR AH 26400 AR $ 15.40 AH 26400 SH 26700 SR $ 15.00 $ 15.00 $ 406,560.00 $396,000.00 $400,500.00 $(10,560.00) $ 4,500.00 Direct Labor Rate Variance Direct Labor Efficiancy Variance Total Labor Cost Variance $ (10,560.00) Unfavorable $ 4,500.00 Favorable $ (6,060.00) Unfavorable Direct Labor Rate Variance Direct Labor Efficiancy Variance Total Labor Cost Variance = (AH * SR) - (AH * AR) = (SH * SR) - (AH * SR) = ( SH * SR) - (AH * AR)