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16-53 Manufacturing Variances Clemson prepares its budgets on the basis of standard costs. A report is prepared monthly showing the differences between master budget and
16-53 Manufacturing Variances Clemson prepares its budgets on the basis of standard costs. A report is prepared monthly showing the differences between master budget and actual results. Variances are analyzed and reported separately. There are no materials inventories. The following information relates to the current period: Actual costs and activities for the month follow: Standard costs (per unit of output) Materials used.............. 4.200 gallons at $5.40 per gallon Direct materials, 2 gallons @ $6.00 per gallon ........ $ Output ......... 1,900 units Direct labor, 4 hours @ $24 per hour ...... Actual labor costs ........... 6,400 hours at $30 per hour Factory overhead Actual variable overhead...... $54,000 Variable (25% of direct labor cost).... Total standard cost per unit.............. Actual Price x Actual Quantity Standard Price x Actual Quantity Standard Price x Standard Quantity Direct Materials Price Variance Quantity Variance Actual Rate x Actual Hours Standard Ratex Actual Hours Standard Rate x Standard Hours Direct Labor Rate Variance Efficiency Variance Actual Variable Overhead Costs Standard Rate x Actual Hours Standard Rate x Standard Hours Variable Overhead Spending Variance Efficiency Variance
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