Question
Manlius Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard costs for one
Manlius Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard costs for one unit of product are as follows:
Direct material: 6 ounces at $0.50 per ounce | $3.00 |
Direct labor: 0.6 hours at $30.00 per hour | $18.00 |
Variable manufacturing overhead: 0.6 hours at $10.00 per hour | $6.00 |
Total standard variable cost per unit | $27.00 |
During January, 2,000 units were produced. The costs associated with Januarys operations were as follows:
Material purchased: 18,000 ounces at $0.60 per ounce | $10,800 |
Material used in production: 14,000 ounces |
|
Direct labor: 1,100 hours at $30.50 per hour | $33,550 |
Variable manufacturing overhead costs incurred | $12,980 |
Determine the direct materials variance, direct labor variance, and variable manufacturing overhead variance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started