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A retail product has the following standard costs established: • Direct Material per unit - 2 pounds at $5 a pound • Direct Labor per unit – 3 hours at $12 an hour Manufacturing Overhead – $5 per labor hour The following are the actual costs for the month in producing 1,000 units: • Direct Material $11,500 (2,090 pounds used) • Direct Labor $35,000 (2,800 hours used) • Manufacturing Overhead applied $17,000

A retail product has the following standard costs established: • Direct Material per unit - 2 pounds at $5 a pound • Direct Labor per unit – 3 hours at $12 an hour Manufacturing Overhead – $5 per labor hour The following are the actual costs for the month in producing 1,000 units: • Direct Material $11,500 (2,090 pounds used) • Direct Labor $35,000 (2,800 hours used) • Manufacturing Overhead applied $17,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2PA: Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 27,000...
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1. Compute the actual material cost per pound? 
2. Compute the actual labor rate per hour? 
3. Compute the Total Material variance 
4. Compute the Material Price variance
5. Compute the Material Quantity variance
6. Compute the Total Labor variance
7. Compute the Labor Price variance
8. Compute the Labor Quantity variance
9. Compute the Total Manufacturing Overhead variance
10. Which variance(s) would be the responsibility of the Production Manager?
11. Which variance(s) would be the responsibility of the Purchasing Manager?
I know it will be a lot work. Thank you so much!
A retail product has the following standard costs established: • Direct Material per unit - 2 pounds at $5 a pound • Direct Labor per unit – 3 hours at $12 an hour Manufacturing Overhead - $5 per labor hour The following are the actual costs for the month in producing 1,000 units: • Direct Material $11,500 (2,090 pounds used) • Direct Labor $35,000 (2,800 hours used) Manufacturing Overhead applied $17,000 ●
Transcribed Image Text:A retail product has the following standard costs established: • Direct Material per unit - 2 pounds at $5 a pound • Direct Labor per unit – 3 hours at $12 an hour Manufacturing Overhead - $5 per labor hour The following are the actual costs for the month in producing 1,000 units: • Direct Material $11,500 (2,090 pounds used) • Direct Labor $35,000 (2,800 hours used) Manufacturing Overhead applied $17,000 ●
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