Question

Required Information The following information applies to the questions displayed below] A manufactured product has the following information for June. Actual Standard 51,508 lbs. $8.10 per 1b. 21,508 hrs. e $16.58 per hr. $268,000 7,300 (7 1bs. e $8 per 1b.) (3 hrs.$16 per hr. (3 hrs. e $12 per hr.) Direct materials Direct labor Overhead Units nanufactured (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 work. thank you

Answer 1

Answer:

1.Standard cost (SC) per unit is computed as follows:
		Amount($)
Direct material	7 lbs× $8	56.00
Direct labor	3hrs × $16	48.00
Overhead	3hrs × $12	36.00
Total		140.00

2.Total cost variance (TCV) is computed as follows:

TCV = Total standard cost (TSC) - Total actual cost (TAC)

TSC = Units manufactured * SC per unit

= 7,300 * $140

= $10,22,000

TAC = (51,500 * $8.10) + (21,500 * $16.50) + $268,000

= $417,150+ $354,750 + $268,000

= $10,39,900

TCV = $10,22,000 - $10,39,900

= $17,900(U)