Question

Required information [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 5 lbs. @ $7 per lb. 3 hrs. @ $16 per hr. 3 hrs. @ $11 per hr. Actual 43, 600 lbs. @ $7.10 per lb. 25,600 hrs. @ $16.60 per hr. $290,400 8,600 (1) Compute the standard cost per unit. (2) Compute the total cost variance for June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the standard cost per unit. Direct materials Direct labor Overhead Total $ Required 1 Required 2 >

Answer 1

2 А 1 1) Particulars Amount 3 Direct materials $ 4 Direct labor $ 48 5 Overhead $ 33 6 Standard cost per unit $ 116 35 7 82) 9 Units manufactured 8600 10 Standard cost per unit $ 116 11 Total budgeted cost $ 997,600 12 Particulars Amount 14 Direct materials $ 309,560 15 Direct labor $ 424,960 16 Overhead $ 290,400 17 Total Actual cost $ 1,024,920 13

Total cost variance = Actual cost - Standard cost Total cost variance = $1,024,920 - $997,600 Total cost variance = $27,320 Unfavorable Cost variance $ 27,320 Unfavorable

А в 1 1) 2 Particulars Amount 3 Direct materials =5*7 4 Direct labor =3*16 5 Overhead =3*11 6 Standard cost per unit -+B3+B4+B5 8 2 9 Units manufactured 8600 10 Standard cost per unit =+B6 11 Total budgeted cost =+B9*B10 12 Particulars 14 Direct materials 15 Direct labor 16 Overhead 17 Total Actual cost Amount -43600*7.1 =25600*16.6 290400 |=+B14+B15+B16

D E F G H I K J Standard Cost 2 A B C Actual Cost 2 AQ X AP 43,600 X $ 7.10 $ 309,560 SP AQ 43,600 X X $ 305,200 SP $ 7.00 43,000 $ 7.00 X $ 301,000 $ 4,360 $ 4,200 $4,360 Unfavorable 4,200 Unfavorable $ 8,560 Unfavorable SH 7 Direct materials price variance 8 Direct materials quantity variance 9 Total direct materials variance 10 11 Actual Cost 12 AH XAR 13 25,600 14 $ 424,960 15 15360 16 Direct labor rate variance 18 Direct labor efficiency variance 19 Total Direct labor cost variance AH 25,600 X X $ 409,600 SR $ 16.00 Standard Cost X 25,800 X $ 412,800 SR $ 16 $ 3,200 17 $ 15,360 Unfavorable $ 3,200 Favorable $ 12,160 Unfavorable

D E F G H I Standard Cost A B C Actual Cost 2 AQ X 3 43600 X 17.1 =+A3*C3 43600 =8600*5 X =+E3*G3 4. =+13*K3 =+B4-F4 =+F4-14 =+D5 =+H5 =+E7+E8 Unfavorable Unfavorable Unfavorable AR AH 7 Direct materials price variance 8 Direct materials quantity variance 9 Total direct materials variance 10 11 Actual Cost АН | 13 25600 16.6 14 =+A13*C13 15 =+B14-F14 16 Direct labor rate variance Direct labor efficiency variance Total Direct labor cost variance Standard Cost SH =8600*3 =+113*K13 25600 =+E13*G13 =+J14-F14 =+D15 Unfavorable =+H15 Favorable =+E17-E18 Unfavorable 20