Question
A manufactured product has the following information for August. Standard Actual Direct materials 2 lbs. per unit @ $3.50 per lb. Direct labor 0.5 hours
A manufactured product has the following information for August.
| Standard | Actual | ||||
| Direct materials | 2 lbs. per unit @ $3.50 per lb. | ||||
| Direct labor | 0.5 hours per unit @ $24 per hour | ||||
| Overhead | $24 per direct labor hour | ||||
| Units manufactured | 12,400 | ||||
| Total manufacturing costs | $ | 380,400 | |||
(1) Compute the standard cost per unit. (2) Compute the total budgeted cost for production in August. (3) Compute the total cost variance for August. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
A manufactured product has the following information for August.
| Standard | Actual | ||||
| Direct materials | 2 lbs. per unit @ $3.50 per lb. | ||||
| Direct labor | 0.5 hours per unit @ $24 per hour | ||||
| Overhead | $24 per direct labor hour | ||||
| Units manufactured | 12,400 | ||||
| Total manufacturing costs | $ | 380,400 | |||
(1) Compute the standard cost per unit. (2) Compute the total budgeted cost for production in August. (3) Compute the total cost variance for August. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
| Direct materials | |
| Direct labor | |
| Overhead | |
| Total | |
*Total budgeted cost
| Cost variance |
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A Guide To Auditing Programmes And Projects
Authors: Andrew Schuster, APM Assurance SIG
1st Edition
191330521X, 978-1913305215
