Question
Manufacturing Cost Variances. a) Make up your own Standard and Actual data for a production run of 60,000 units of a product. Every line of
Manufacturing Cost Variances.
a) Make up your own Standard and Actual data for a production run of 60,000 units of a product. Every line of your actual data must be different than your standard data to receive credit. Use the following formats for 60,000 units.
Standard data:
| Cost Type | Standard Price/Rate | x | Standard Quantity | = | Standard Cost |
| Direct Materials | $?.?? | x | ??,??? | = | $??,??? |
| Direct Labor | $??.?? | x | ??,??? | = | $??,??? |
| Factory Overhead | $??.?? | x | ??,??? | = | $??,??? |
Total Standard Product Cost for 60,000 units = $???,???
Actual Data:
| Cost Type | Standard Price/Rate | x | Standard Quantity | = | Standard Cost |
| Direct Materials | $?.?? | x | ??,??? | = | $??,??? |
| Direct Labor | $??.?? | x | ??,??? | = | $??,??? |
| Factory Overhead | $??.?? | x | ??,??? | = | $??,??? |
Total Standard Product Cost for 60,000 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.
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
Frank Woods Business Accounting An Introduction To Financial Accounting
Authors: Alan Sangster, Lewis Gordon, Frank Wood
15th Edition
1292365439, 9781292365435
