Question

BatCo makes metal baseball bats. Each bat requires 2.00 kg of aluminum at $20 per kg and 0.35 direct labor hours at $22 per hour. Overhead is assigned at the rate of $40 per direct labor hour.

1)What amounts would appear on a standard cost card for BatCo?

	Qty per Unit Cost per Input Std. Cost per Unit Direct materials Direct labor Overhead

2)Assume the actual cost to manufacture one metal bat is $67.70. Compute the cost variance and classify it as favorable or unfavorable.

	Qty per Unit Cost per Input Total Direct materials Direct labor Overhead

Answer 1

Thank you

Cost perunit std cost peruan aty per unit $20 $ 40 Direct material 2.00kg $7.7 $22. Direct 0.35 hours Lobor Lover read 0.35 hours $40 Total standard Cast $14 $61.7 alu per unit Cost perunit Standard Cast per usät 40 Direct material 2.ookg &20 Direct 0.35 hours Labor 77 & 22 overhead 0.35 hours & 4o Total standard Cost Actual cost Cast varicence $61.17 $67. to $ 60)

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