SCHMIDT MACHINERY COMPANY Standard Cost Sheet Product: XV-1 Descriptions Direct materials: Quantity Unit Cos Subtotal Total Aluminum 4 pounds 1 pound 5 hours 5 hours S25 40 40 12 S100 40 200 60 PVC Direct labor Variable factory overhead Total variable manufacturing cost Fixed factory overhead* Standard manufacturing cost per unit Standard variable selling and administrative expense per unit S400 120 $520 S 50 5 hours 24 120 Budgeted fixed factory overhead cost $120,000 Schmidt Machinery Company (Exhibit 14.5) used 3,480 pounds of aluminum in June to manufacture 926 units. The company paid $29.10 per pound during the month to purchase aluminum. On June 1, the company had 56 pounds of aluminum on hand. At the end of June, the company had only 36 pounds of aluminum in its warehouse. Schmidt used 4,500 direct labor-hours in June, at an average cost of $42.10 per hour. Required Compute for June: 1. Schmidt's purchase-price and usage variances for aluminum. Purchase-price variance Usage variance 2. Schmidt's direct labor rate and efficiency variances. Direct labor rate variance Efficiency variance