Direct materials-1 pound plastic at $6 per pound Direct labor-2.50 hours at $11.35 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $10 per direct labor hour ($25.00 +2.50). It was computed from a master manufacturing overhead budget based on normal production of 14,500 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $101,500 ($7.00 per hour) and total fixed overhead costs of $43,500 ($3.00 per hour). Actual costs for October in producing 4,600 units were as follows. Direct materials (4,710 pounds) Direct labor (11,400 hours) Variable overhead Fixed overhead Total manufacturing costs $6.00 28.38 17.50 7.50 $59.38 $ 29,202 132,810 85,098 32,202 $279,312 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute all of the materials and labor variances & total overhead variance.

Direct materials-1 pound plastic at $6 per pound Direct labor-2.50 hours at $11.35 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $10 per direct labor hour ($25.00 +2.50). It was computed from a master manufacturing overhead budget based on normal production of 14,500 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $101,500 ($7.00 per hour) and total fixed overhead costs of $43,500 ($3.00 per hour). Actual costs for October in producing 4,600 units were as follows. Direct materials (4,710 pounds) Direct labor (11,400 hours) Variable overhead Fixed overhead Total manufacturing costs $6.00 28.38 17.50 7.50 $59.38 $ 29,202 132,810 85,098 32,202 $279,312 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute all of the materials and labor variances & total overhead variance.

Name: **Standard Cost and Manufacturing Cost Analysis****Standard Cost Per
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Description: **Standard Cost and Manufacturing Cost Analysis****Standard Cost Per Unit:**- **Direct materials—1 pound plastic at $6 per pound:** $6.00- **Direct labor—2.50 hours at $11.35 per hour:** $28.38- **Variable manufacturing overhead:** $17.50- **Fixed m

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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