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ChecK my worK Blue Dingo uses a standard costing system. The companys standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows Variances Standard Cost 80,000 Unfavorable Favorable Direct materials Price variance Quantity variance 4,500 $3,000 Direct labor 181,000 2,700 Rate variance Efficiency variance 6,200 Manufacturing overhead 268,000 Spending variance Volume variance 3,800 5,000 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead Actual Costs Incurred Direct materials Direct labor Manufacturing overhead

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Calculate actual costs incurred as follows:

Particulars 2 Standard Cost of Direct materials 3 Add: Unfavorable price variance 4 L 5 Actual Materials Cost $80,000 S4,500 (S3,000) S81500 ess: Favorable quantity variance Particulars Amount $181,000 (S2,700) $6,200 S184500 8 Standard Cost of Direct Labor 9 Less: Favorable rate variance 0 Add Unfavorable eficensy variance 11 Actual Direct Labor Cost 12 13 14 Standard Cost of manufacturing overheads 15 Less: Favorable spending variance 16 Add: Unfavorable volume variance 17 Actual manufacturing overheads Particulars $268,000 ($3,800) 269,200

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