Question

Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. $8 per Ib., (2 hrs. $16 per hr.) 41,900 lbs. $8.20 per lb 16,300 hrs. $16.40 per hr. Dverht e s bor(2 hnrs. 8 $12 per hr205,30 hs.e $6.4 per hr Overhead Units manufactured (2 hrs. $12 per hr.) $205, 50e 8,300 (1) Compute the standard cost per unit. Direct materials Direct labor Overhead Total (2) Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable. Total cost variance

Please show steps

Answer 1

Solution Standard cost per unit a) Direct materials-(5lbs $8 per lb.) $40 per unit b) Direct labor (2hr $16 per hr.) $32 per unit c) Overhead-Chr*$ 12 per hr.) = $ 12 per unit 1) *Total standard cost per unit = (40+32+12) = $84 / unit Total cost variance for june 2) Total cost variance = Actual cost-standard cost -[8,300 (5lbs*8.20 per lb.) + (2hr*$16.40 per hr.) + $205.000]-[8300 s84/unit] -[(8,300*73.8)+ $205,000]-[S697,200] - [$612,540+$205,000] [S697.200] - $120,340 Unfavorable Scanned wit cs S CamScanner ish (United States)