Question

I am having trouble figuring out the standard cost for the direct labor and the Manufacturing Overhead

The standard cost card for a unit of product at the Cleaner Corp. shows the following standard cost information: $64 Materials: 4 gallons at $16 per gallon Labor: 5 hour at $14 per hour Overhead: 40% of direct labor Total 70 28 $162 During the month of October 2019, Job 0-3 was completed. It was the only job worked on during October. Four thousand five hundred thousand units were produced from the job. The actual costs were as shown below: Materials: 18,200 gallons at $15.90 per gallon Labor: 22,400 hours at $13.80 per hour Actual Overhead Total $289,380 309,120 123,648 $722,148 Calculate the total variance between the actual cost and the standard cost for the month (Indicate the effect of each variance by...

Answer 1

Cost Element	Standard Cost	Actual Cost	Variance
Materials
Standard	$       288,000		$      1,380	U
Actual		$ 289,380
Labor
Standard	$       315,000		$     (5,880)	F
Actual		$ 309,120
Manufacturing Overhead
Standard	$       126,000		$     (2,352)	F
Actual		$ 123,648
Total	$       729,000	$ 722,148	$     (6,852)
Variance		$     (6,852)		F

Here is the formula version

Cost Element	Standard Cost	Actual Cost	Variance
Materials
Standard	=4500*4*16		=289380-288000	U
Actual		=18200*15.9
Labor
Standard	=4500*5*14		=309120-315000	F
Actual		=22400*13.8
Manufacturing Overhead
Standard	=C7*0.4		=123648-126000	F
Actual		123648
Total	=SUM(C4:C11)	=SUM(D4:D11)	=SUM(E4:E11)
Variance		=D13-C13		F