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Determining Unit Costs, Variance Analysis, and Interpretation Big Dog Company, a manufacturer of dog food, produces its product in 1 , 0 0 0 -
Determining Unit Costs, Variance Analysis, and Interpretation
Big Dog Company, a manufacturer of dog food, produces its product in bag batches. The standard cost of each batch consists of
pounds of direct materials at $ per pound, direct labor hours at $ per hour, and variable overhead cost based on
machine hours at the rate of $ per hour with machine hours per batch. The following variable costs were incurred for the last
bag batch produced:
a Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and
variable overhead.
Round your answers to three decimal places.
b For the last bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead.
Round your answers two decimal places.
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