Manufacturing Cost Variances.

a) Make up your own Standard and Actual data for a production run of 20,000 units of a product. Make sure your actual data is different than your standard data. Use the following formats for 20,000 units:

Cost Type Standard Price/Rate x Standard Quantity = Standard Cost

Direct Materials (DM) $?.?? x ??? = ???

Direct Labor (DL) $?.?? x ??? = ???

Factory Overhead (FO) $?.?? x ??? = ???

Total Standard Product Cost for 20,000 units = ????

Cost Type Actual Price/Rate x Actual Quantity = Actual Cost

Direct Materials (DM) $?.?? x ??? = ???

Direct Labor (DL) $?.?? x ??? = ???

Factory Overhead (FO) $?.?? x ??? = ???

Total Actual Product Cost for 20,000 units = ????

b) Calculate your Standard and Actual product cost per unit.

c) Calculate your Direct Materials (DM) Price Variance, DM Quantity Variance, and total DM Cost Variance.

d) Calculate your Direct Labor (DL) Rate Variance, DL Time Variance, and total DL Cost Variance.

e) Calculate your total Factory Overhead (FO) cost variance.