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Please solve all parts except part b. Item b does not require response. Please show solutions/formulas for all required parts. P10-33. Determining Unit Costs, Variance
Please solve all parts except part b. Item b does not require response. Please show solutions/formulas for all required parts.
P10-33. Determining Unit Costs, Variance Analysis, and Interpretation LO2, 3 Big Dog Company, a manufacturer of dog food, produces its product in 1,000-bag batches. The standard cost of each batch consists of 8,000 pounds of direct materials at $0.40 per pound, 48 direct labor hours at $8.75 per hour, and variable overhead cost (based on machine hours) at the rate of $10 per hour with 16 machine hours per batch. The following variable costs were incurred for the last 1,000-bag batch produced: 8,300 pounds costing$3,154 were purchased and used Direct materials Direct labor 45 hours costing $450 Variable overhead $225 Machine hours used 18 hours Required a. Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and variable overhead. b. For the last 1,000-bag batch, determine the standard cost variances for direct materials, di- rect labor, and variable overhead. C. Explain the possible causes for each of the variances determined in requirement (b) Step by Step Solution
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