Challenge #7 STANDARD COSTS AND VARIANCES to make one widget. th low to show the total manufacturing cost of one widget The standards are to be computed omal annual production of 60,000 widgets for the year, with factory overhead applied bas ets. In the table below, the company has begun the calculation of the standard sing the standard manufacturing overhead data provided, complete the table d based on direct labor hours. At the beginning of the year , management made the following estimates related to overhead: For Normal Capacity (estimated at the beginning of the year for a production level of 60,000 widgets): Estimated annual variable overhead costs Estimated annual fixed overhead costs = $807,500 $337,500 $945,000 Total estimated annual overhead costs Total estimated annual direct labor hours (DLH) at 100% of normal capacity (60,000 widgets,- 90,000 Total DLHs Variable factory overhead rate per direct labor hour Fixed factory overhead rate per direct labor hour Predetermined factory overhead rate per DLH per DLH -per DLH per DLH 1. Complete the Standard Cost Report: Wakky Company Standard Cost Report Product manufacturedWidgets | | Unit of Product = One Widget Standard Standard Price ect materials Direct labor 3 pounds 1.5 DLHs $8.00 per pound $15.00 per DLH Factory overhead applied: Variable FOH Fixed FOH per DLH per DLH Calculated standard cost to manufacture 1 widget 2. Calculate the standard costs allowed for the actual output level of widgets: Standard B 70,000 widgets Total Direct materials cost Direct labor cost Factory overhead applied per lb per DLH PFOH Rate total lbs allowed total DLH allowed total DLH allowed Standard cost allowed for actual output level The actual cost and amounts of input to make the actual output of 70,000 widgets for the year ended December 31, 201X was: Iotal Direct materials: 208,000 Direct labor: Factory Overhead (FOH): $6.20 per pound 111,000 DLH@$14.00 per DLH Total variable FOH costs Total fixed FOH costs Total actual FOH costs for 201X $695,000 $340,000 Actual cost for actual output level Calculate the total manufacturing cost variance 79