Question
COGS is based on a standard cost that is comprised of $50 material cost per unit, $25 labor cost per unit and $10 overhead allocation
COGS is based on a standard cost that is comprised of $50 material cost per unit, $25 labor cost per unit and $10 overhead allocation cost / unit.
1,000,000 units were sold in 2019; 800,000 units were produced in 2019
Labor inefficiencies resulted in an incremental 15 minutes of labor charge / unit at the rate of $12.50/hour.
The material purchase price variance averaged $3.12/unit
Calculate:
| COGS - Standard |
| COGS - Material variance |
| COGS - Labor variance |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the different components of the Cost of Goods Sold COGS based on the given information ...
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Step: 2
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
