Question
In: Accounting
A manufactured product has the following information for August. Standard Actual Direct materials 2 lbs. per...
A manufactured product
has the following information for August.
| Standard | Actual | ||||
| Direct materials | 2 lbs. per unit @ $3.50 per lb. | ||||
| Direct labor | 0.5 hours per unit @ $24 per hour | ||||
| Overhead | $24 per direct labor hour | ||||
| Units manufactured | 12,400 | ||||
| Total manufacturing costs | $ | 380,400 | |||
(1) Compute the standard cost per unit.
(2) Compute the total budgeted cost for production
in August.
(3) Compute the total cost variance for August.
(Indicate the effect of each variance by selecting for
favorable, unfavorable, and no variance)
A manufactured product
has the following information for August.
| Standard | Actual | ||||
| Direct materials | 2 lbs. per unit @ $3.50 per lb. | ||||
| Direct labor | 0.5 hours per unit @ $24 per hour | ||||
| Overhead | $24 per direct labor hour | ||||
| Units manufactured | 12,400 | ||||
| Total manufacturing costs | $ | 380,400 | |||
(1) Compute the standard cost per unit.
(2) Compute the total budgeted cost for production
in August.
(3) Compute the total cost variance for August.
(Indicate the effect of each variance by selecting for
favorable, unfavorable, and no variance)
| Direct materials | |
| Direct labor | |
| Overhead | |
| Total | |
*Total budgeted cost
| Cost variance |
Solutions
Expert Solution
1) Compute the standard cost per unit.
| Direct materials (2lbs x $3.50) | $7.00 |
| Direct labor (0.5 hours x $24) | $12.00 |
| Overhead (0.5 hours x $24) | $12.00 |
| standard cost per unit | $31.00 |
(2) Total budgeted cost = standard cost per
unit x Units Produced
= $31.00 x 12,400 units
= $384,400
(3) Total cost variance = Standard
(Budgeted ) cost - Actual Cost
= $384,400 - $380,400
= $4,000 Favorable
ekkarill92 answered 2 years agoRelated Solutions
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