1. A manufactured product has the following information for June. Standard Actual Direct materials (6 lbs. @ $9 per lb.) 53,300 lbs. @ $9.10 per
1. A manufactured product has the following information for June.
| | Standard | Actual |
| Direct materials | (6 lbs. @ $9 per lb.) | | 53,300 | lbs. @ $9.10 per lb. |
| Direct labor | (3 hrs. @ $16 per hr.) | | 26,000 | hrs. @ $16.40 per hr. |
| Overhead | (3 hrs. @ $12 per hr.) | $ | 323,500 | |
| Units manufactured | | | 8,800 | |
| |
Compute the standard cost per unit.
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| | | | | Direct materials | | | Direct labor | | | Overhead | | | Total | | |
Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable.
2. A manufactured product has the following information for June.
| | Standard | Actual |
| Direct materials | (5 lbs. @ $8 per lb.) | | 37,500 | lbs. @ $8.10 per lb. |
| Direct labor | (2 hrs. @ $16 per hr.) | | 14,400 | hrs. @ $16.40 per hr. |
| Overhead | (2 hrs. @ $12 per hr.) | $ | 184,600 | |
| Units manufactured | | | 7,400 | |
| |
Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.
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| | | Actual Cost | | | | Standard Cost | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
3. A manufactured product has the following information for June.
| | Standard | Actual |
| Direct materials | (5 lbs. @ $9 per lb.) | | 36,400 | lbs. @ $9.10 per lb. |
| Direct labor | (3 hrs. @ $16 per hr.) | | 21,200 | hrs. @ $16.40 per hr. |
| Overhead | (3 hrs. @ $13 per hr.) | $ | 286,200 | |
| Units manufactured | | | 7,200 | |
| |
Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.>
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| | | Actual Cost | 0 | | 0 | Standard Cost | | | | | | | | | | | | | | 0 | | | | | | | | | | | | | | | | | | | $0 | 0 | $0 | | | | | | $0 | | | | | 0 | | | | | | |
4. Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.
| | | | | |
| Direct materials (15 lbs. @ $3 per lb.) | | | $45 | |
| Direct labor (3 hrs. @ $15 per hr.) | | | 45 | |
| |
| During June the company incurred the following actual costs to produce 8,900 units. |
| | | | | |
| Direct materials (136,900 lbs. @ $2.80 per lb.) | | $ | 383,320 | |
| Direct labor (30,200 hrs. @ $15.10 per hr.). | | | 456,020 | |
| |
| | Compute the direct materials price and quantity variances. |
| |
| | | Actual Cost | | | | Standard Cost | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.
| |
| | | Actual Cost | | | | Standard Cost | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
