Exercise 10A-5 Using Fixed Overhead Variances [LO10-4]

The standard cost card for the single product manufactured by Cutter, Inc., is given below:

Standard Cost Cardper UnitDirect materials, 3.6 yards at $3.00 per yard$10.80Direct labor, .7 hours at $16.00 per hour11.20Variable overhead, .7 hours at $2.00 per hour1.40Fixed overhead, .7 hours at $5.00 per hour3.50Total standard cost per unit$26.90