Question

Help Sav 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 (5 lbs. $7 per lb.) (2 hrs. $16 per hr.) (2 hen. $12 per hr.) Actual 40,400 lbs. $7.10 per lb. 15,800 hrs. $16.60 per hr. $198.000 8.000 (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

standard cost per unit Direct material (587) $35 Direct Labour Cax(6) overhead (2 x 12) $32. $24 $ qi 2 Total cost variance Direct material costvariance = (40, 400 X 7. 1) - (65x860087) = 886 846 -880000 = 6840 (Adverse) Direct Labour Variance = (2x8000x 16) - (15800816060) = 256000 - 262.280 (6280 Adverse) Overhead variance = (1600x 12) – $198000 z (6000) Adves se Total cost variance = 119 120 Adverse)