Question
For a car model, Ford Motor Company has set the following standard costs: | Direct Materials | 200 kg at $5 per kg | |
For a car model, Ford Motor Company has set the following standard costs:
| Direct Materials | 200 kg at $5 per kg | | Direct Labor | 10 hours at $30 per hour | | Variable Overhead| $1,000 per unit | | Fixed Overhead | $500 million per year |
If 100,000 units were produced, calculate the total standard cost and the total actual cost incurred.
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
