Question

Required information The following information applies to the questions displayed below. A manufactured product has the following information for June Standard 5 lbs. 2 S8 per Actual Direct materials 42.100 lbs. @ $8.20 per 42,100 lb s hrs. @ $17.50 per Direct labor 3 hrs. @ $17 per hr. 3 hrs. $13 per hr Overhead Units manufactured 200 $329,000 8,300 (1) Compute the standard cost per unit. (2) Compute the total cost variance for June Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the standard cost per unit. Direct materials Direct labor Overhead Total < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total cost variance for June. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Total cost variance < Required 1 Required 2)

Answer 1

Direct Materials (5*8)	40
Direct labor (3*17)	51
Overhead (3*13)	39
Total	130

Total Cost variance = (130*8300) - [(42100*8.20)+(24500*17.50)+329,000]

= 1,079,000 - 1,102,970

= 23,970 Unfavorable

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