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Jigsaw Puzzle Company makes a certain product using materials measured in metres, labour-hours, and overhead costs. The company uses a standard costing system. The following
Jigsaw Puzzle Company makes a certain product using materials measured in metres, labour-hours, and overhead costs. The company uses a standard costing system. The following information is available regarding the standard variable costs of producing one unit: Standard variable overhead cost per direct labour-hour Standard direct materials cost per metre Total standard variable cost per unit $ 6 16 63 In the month of June, 3,200 units were produced and sold. Also in June, all materials purchases made in the month were consumed in production. Selected information for June follows: Standard cost of direct labour to produce 3,200 units Standard cost of variable manufacturing overhead to produce 3,200 units Actual direct materials cost Actual variable overhead cost $ 51,200 9,600 $ 140,800 Actual direct labour-hours Total materials variance Materials quantity variance Variable overhead spending variance Actual variable cost per unit produced Actual fixed overhead cost Required: 1. Based on the above information, calculate the following for June: a. What is $9,600/$6? $9,600/$6 b. What is the standard wage rate per direct labour-hour? Standard direct labour per hour c. Calculate the standard cost of the materials required for June production. Standard cost $ 9,900 1,750 $ 1,920 F $ 2,570 U $ 14 14 14 $ $ 650 F 64.00 41,150 d. What is $64.00 3,200? $64.00 x 3,200 e. Calculate the total actual direct labour cost incurred. (Do not round Intermediate calculations.) Actual direct labour f. Calculate materials price variance. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance.).) Materials price variance g. Calculate the labour rate variance. (Do not round Intermediate calculations. Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance.).) Labour rate variance 4. Calculate the actual cost of direct materials per unit. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Actual cost of direct materials per unit
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