Actual Output | = | 27900 units | ||||||
Standard Labour Hours = 1.6 Hrs. per Unit | = | 27900*1.6 | = | 44640 | hrs. | |||
Standard Labour Rate | = | $ 13 per hour | ||||||
Standard Labour Cost | = | 44640*13 | = | 580320 | ||||
Actual Qty. Used | = | 130300 pounds | ||||||
Actual Cost per pound | = | $0.93 | ||||||
Actual Material Cost | = | 130300*0.93 | = | 121179 | ||||
Material Price Variance | = | 2606 | Favourable | |||||
Material Qty. Variance | = | 17765 | Adverse | |||||
Material Cost Variance | = | 15159 | Adverse | |||||
Material Cost Variance | = | Standard Material Cost (SMC)-Actual Material Cost | ||||||
-15159 | = | SMC-121179 | ||||||
SMC | = | 121179-15159 | ||||||
SMC | = | 106020 | ||||||
Total Standard Cost | = | Standard labour Cost+Standard Material Cost | ||||||
= | 580320+106020 | |||||||
= | 686340 | |||||||
Standard Cost per unit | = | Total Standard Cost/Actual Output | ||||||
= | 686340/27900 | |||||||
= | 24.6 | |||||||
Material Price Variance | = | (Standard material price (SMC)-Actual material price)*Actual Qty. | ||||||
2606 | = | (SMC-0.93)*130300 | ||||||
SMC | = | (2606/130300)+0.93 | ||||||
SMC | = | 0.02+0.93 | ||||||
SMC per pound | = | $0.95 | ||||||
Material Qty Variance | = | (Standard material Qty (SMQ)-Actual material Qty)*Standard Material Price | ||||||
-17765 | = | (SMQ-130300)*0.95 | ||||||
SMQ | = | (-17765/0.95)+130300 | ||||||
SMQ | = | 130300-18700 | ||||||
SMQ | = | $111,600.00 | ||||||
SMQ per Unit | = | SMQ/Actual ouput | ||||||
SMQ per Unit | = | 111600/27900 | ||||||
SMQ per Unit | = | 4 | ||||||
Standard Hours allowed for the unit produced | = | Standard labour hours per unit*Actual output | ||||||
= | 1.6*27900 | |||||||
= | 44640 | |||||||
Labour Qty Variance | = | (Standard Hours Worked -Actual Hours Worked(AHW))*Standard Labour Rate | ||||||
-6500 | = | (44640-AHW)*13 | ||||||
AHW | = | 44640+(6500/13) | ||||||
AHW | = | 44640+500 | ||||||
AHW | = | 45140 | ||||||
Labour Price Variance | = | (Standard Labour Rate -Actual Labour Rate (ALR))*AHW | ||||||
9028 | = | (13-ALR)*45140 | ||||||
ALR | = | 13-(9028/45140) | ||||||
ALR | = | 13-0.20 | ||||||
ALR | = | 12.80 | ||||||
Total Budgeted Manfacturing Overhead | = | $328,020 | ||||||
Direct Labour Hour at Normal Capacity | = | 49700 | ||||||
Predetermined Rate | = | Total Budgeted Manfacturing Overhead/Direct Labour Hour at Normal Capacity | ||||||
Predetermined Rate | = | 328020/49700 | ||||||
Predetermined Rate | = | 6.6 |
tem. In 2020, the company produced 27,900 units. Each unit took several pounds of direct materials ndar...
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