Question

Required information [The following information applies to the questions displayed below.) A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. $8 per lb.) (2 hrs. @ $16 per hr.) (2 hrs. @ $12 per hr.) Actual 49,700 lbs. @ $8.10 per lb. 16,000 hrs. @ $16.60 per hr $202,300 8,200 (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

Answer 1

Compulation of the slandard cost per unid. * Diree mailenial cord = (Total lbs per unit x cost pere lbs.) = 16 lbs. X $8 per lb.) 1. £48 (Are ) * Dineed labor cost - (Total hours per unit x cost per hour) 12 hrs. x $ 16 per hr.) $32 Ans.) * Overhead cool =(Tolel houves per tnil x cost per hour) El á hres, X $ 12 perhr.) - $24 (Ama. ) unit per hour Answers: Derneed Maderials. L. Direed labore LOverhead - Tolal $ 48 § 32 $ 24 s 104

(2) Computation of the total cost variance for June, Todal cost variance 7 Slcenclard cost pere Actuah lactual output * Standard cost per aelual oudpol : Derreed material cost of Actual Standard manu faeslered per unit) - (8200 x $48) t 7 inciden ( MacP costo hangland Direed laboricoed = $313,600 DU =(8200 X $32) - $263,400 Overthead cost - ( 8 200 X $ 24 ) = $196800 stolal standard cost per aetual ou put +($ 393,600+ € 262400 + $196800) = $ 852800 * Actual Cost : => Direel material cost = 149700 X 18.10) voll I madenia . $402.570 = Direed bohinj & Direct labore cost = 116000 X8 16.60) = $265,600 * Overchead cost = $ 202,300 head

The actual cost = $ 402.570 + $365,600 + $ 202,300 = $ 870,470 :: To-lal cost variance = ( $ 852800 - $870,470) =9[17670 on favorable Answer? Torbal costlVariance $ 17670 unfavorable avoleb