Question

In: Accounting

The standard cost sheet for a product is shown. Manufacturing Costs Standard price Standard Quantity Standard...

The standard cost sheet for a product is shown.


Manufacturing Costs

Standard price

Standard Quantity
Standard Cost
per unit
Direct materials $4.30 per pound 5.70 pounds $ 24.51
Direct labor $11.55 per hour 2.30 hours $ 26.57
Overhead $2.20 per hour 2.30 hours $ 5.06
$ 56.14

The company produced 3,000 units that required:

• 17,600 pounds of material purchased at $4.15 per pound

• 6,850 hours of labor at an hourly rate of $11.85 per hour

• Actual overhead in the period was $15,550

Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the nearest dollar. However, do not round your intermediate calculations.

Budget Performance Report

Manufacturing Costs:
3,000 units

Actual
Costs

Standard
Costs
Variance
(Favorable)/
Unfavorable
Direct materials $73,040 $ $
Direct labor 79,695
Overhead 15,550
$ $ $1,358

Solutions

Expert Solution

Statement showing standard cost and actual cost for 3000 units

Particulars Budgeted (1 unit) Standard (3000 units) Actual (3000 units)
Quanitity Rate ($) Cost ($) Quanitity Rate ($) Cost ($) Quanitity Rate ($) Cost ($)
Direct Material (pounds) 5.7 4.3 24.51 17100 4.3 73530 17600 4.15 73040
Direct Labour (hours) 2.3 11.55 26.57 6900 11.55 79695 6850 11.85 81173
Overhead (hours) 2.3 2.2 5.06 6900 2.2 15180 6850 2.27 15550
Total 56.14 168405 169763

Working note : Standard quantity for 3000 units

Direct material = 3000 units x 5.7 pounds per unit = 17,100 pounds

Direct Labour = 3000 units x 2.3 Labour hours per unit = 6,900 labour hours

Overhead = 3000 units x 2.3 hours per unit = 6,900 hours

in above table of actual cost of overhead, acutal hours are same as actual labour since it is same in budgeted of 1 unit

--

Budget Performance Report

Manufacturing cost (3000 units)

Actual Cost ($)

Standard cost ($)

Variances (Favorable/Unfavorable)

Remark

Direct Material

73,040

73,530

$ 490

Favorable

Direct Labour

81,173

79,695

$ 1478

Unfavorable

Overhead

15.550

15,180

$ 370

Unfavorable

$ 1358


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