Question

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

Answer 1

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

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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