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Input Quantity Standard Price Standard Standard Cost of Input Direct materials 24 yard $11 per yal = $264 Direct labor 2 hrs. X $12 per
Input Quantity Standard Price Standard Standard Cost of Input Direct materials 24 yard $11 per yal = $264 Direct labor 2 hrs. X $12 per hr. = $24 Variable MOH 2 hrs. $7 per hr. = $14 x Fixed MOH 2 hrs. $8 per hr. $16 Standard cost $318 Req. 2 Standard price per unit Actual price per unit Difference Multiply by: Actual quantity purchased DM price variance Actual direct materials used Standard quantity allowed Difference Multiply by: Standard direct materials cost per yard DM quantity variance Standard DL rate per hour Actual DL rate per hour Difference Multiply by: Actual direct labor hours DL rate variance Actual direct labor hours Standard direct labor hours allowed Difference Multiply by: Standard direct labor rate per hour DL efficiency variance Variable MOH rate variance: AH x (AR - SR) Variable MOH efficiency variance: SRX (AH - SHA) Fixed overhead budget variance: Actual fixed MOH - Budgeted fixed MOHConrad Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: Standards: Direct materials 24.0 yards per awning at $11.00 per yard Direct labor 2.0 hours per awning at $12.00 per hour Variable MOH standard rate $100 per direct labor hour Predetermined fixed MOH standard rate $8.00 per direct labor hour Total budgeted fixed MOH cost $21,700 Actual cost and operating data from the most recent month are as follows: Purchased 38,400 yards at a total cost of $399,360 Used 34.900 yards in producing 1,500 awnings Actual direct labor cost of $34,727 for a total of 2,870 hours Actual variable MOH $20,377 Actual fixed MOH $26,200 All manufacturing overhead is allocated on the basis of direct labor hours
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