A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH $16 per DLH 3 DLH @ $13 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Actual Results 43,700 pounds @ $8.20 per pound 21,400 hours $16.60 per hour $ 287,500 7,200 units
A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH $16 per DLH 3 DLH @ $13 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Actual Results 43,700 pounds @ $8.20 per pound 21,400 hours $16.60 per hour $ 287,500 7,200 units
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![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 Quantity and Cost
6 pounds @ $8 per pound
3 DLH @ $16 per DLH
3 DLH @ $13 per DLH
(1) Prepare the standard cost card showing standard cost per unit.
(2) Compute total budgeted cost for June production.
(3) Compute total actual cost for June production.
(4) Compute total cost variance for June.
Actual Results
43,700 pounds @ $8.20 per pound
21,400 hours @ $16.60 per hour
$ 287,500
7,200 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61dbdfc4-5338-4084-8491-d9842155f80b%2Fb61a8aaf-61af-41f0-9d31-1cb3c21a1762%2Fhgy8kui_processed.png&w=3840&q=75)
Transcribed Image Text: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 Quantity and Cost
6 pounds @ $8 per pound
3 DLH @ $16 per DLH
3 DLH @ $13 per DLH
(1) Prepare the standard cost card showing standard cost per unit.
(2) Compute total budgeted cost for June production.
(3) Compute total actual cost for June production.
(4) Compute total cost variance for June.
Actual Results
43,700 pounds @ $8.20 per pound
21,400 hours @ $16.60 per hour
$ 287,500
7,200 units
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