Question
Sheridan Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $6.00 per pound
Sheridan Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $6.00 per pound $6.00 Direct labor-1.50 hours at $11.40 per hour 17.10 9.75 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 11.25 $44.10 The predetermined manufacturing overhead rate is $14 per direct labor hour ($21.00 1.50). It was computed from a master manufacturing overhead budget based on normal production of 7,650 direct labor hours (5,100 units) for the month. The master budget showed total variable costs of $49,725 ($6.50 per hour) and total fixed overhead costs of $57,375 ($7.50 per hour). Actual costs for October in producing 3,300 units were as follows. Direct materials (3,430 pounds) $21,266 Direct labor (4,830 hours) 56,511 Variable overhead 49,894 Fixed overhead 21,706 Total manufacturing costs $149,377
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