The standard cost card for a single unit of Robinson, Incorporated's products is shown below.Direct materials:Direct labor:Variable overhead (based on labor hours):Budgeted production for the monthActual production for the monthStandard Quantity Standard Price/Rate2.5 yards @$ 8.00 per yard0.5 hours @$18.00 per hour0.5 hours @$ 10.00 per hour14,000 units13,500 unitsActual Costs Incurred to Produce 13,500 units:Direct Materials Purchased and UsedDirect Labor PaidVariable Overhead IncurredStandard Quantity35,100 yards @7,425 hours @7,425 hours @1. Compute the direct material, direct labor and variable overhead variances.StandardUnit Cost$20.009.005.00Standard Price/Rate$7.00 per yard$17.50 per hour$12.00 per hourTotal ActualCost$2,45,700$1,29,938$ 89,100

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Description: The standard cost card for a single unit of Robinson, Incorporated's products is shown below.Direct materials:Direct labor:Variable overhead (based on labor hours):Budgeted production for the monthActual production for the monthStandard Quantity Sta

Direct materials variance refers to the difference between the actual cost incurred for materials…

Answered: 1. Compute the direct material, direct…

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1. Compute the direct material, direct labor and variable overhead variances.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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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Question

The standard cost card for a single unit of Robinson, Incorporated's products is shown below.
Direct materials:
Direct labor:
Variable overhead (based on labor hours):
Budgeted production for the month
Actual production for the month
Standard Quantity Standard Price/Rate
2.5 yards @
$ 8.00 per yard
0.5 hours @
$18.00 per hour
0.5 hours @
$ 10.00 per hour
14,000 units
13,500 units
Actual Costs Incurred to Produce 13,500 units:
Direct Materials Purchased and Used
Direct Labor Paid
Variable Overhead Incurred
Standard Quantity
35,100 yards @
7,425 hours @
7,425 hours @
1. Compute the direct material, direct labor and variable overhead variances.
Standard
Unit Cost
$20.00
9.00
5.00
Standard Price/Rate
$7.00 per yard
$17.50 per hour
$12.00 per hour
Total Actual
Cost
$2,45,700
$1,29,938
$ 89,100

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