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Ardmore Enterprises uses a standard cost system in its small appliance division. The standard cost of manufacturing one unit of Zeb is: $90 Materials-60 pounds
Ardmore Enterprises uses a standard cost system in its small appliance division. The standard cost of manufacturing one unit of Zeb is: $90 Materials-60 pounds at $1.50 per pound Labor-3 hours at $12 per hour $36 Factory overhead-3 hours at $8 per hour $24 Total standard cost per unit $150 The budgeted variable factory overhead rate is $3 per labor hour, and the budgeted fixed factory overhead is $27,000 per month. During May, Ardmore produced 1,900 units of Zeb compared to a normal capacity of 1,800 units. The actual cost per unit was: $95.70 $36.25 Materials (purchased and used)58 pounds at $1.65 per pound Labor-2.9 hours at $12.50 per hour Factory overhead-$39,930 per 1,650 units Total actual cost per unit $24.20 $156.15 The labor price (or rate) variance for May is
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