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Standard Costing and Variance Analysis Aiyanna Swartz Manufacturing, Inc. planned to produce 25,000 units of a product during 2024. The Standard Cost data for the
Standard Costing and Variance Analysis
Aiyanna Swartz Manufacturing, Inc. planned to produce 25,000 units of a product during 2024. The Standard Cost data for the product is as follows:
DM (3lb @ $2 per pound).$6 Per unit
DM (0.5 hr @ $8.00 per hour).$4 Per unit
Variable overhead (.5hr @ $4.00 per hour)$2 Per unit
The actual production was 24,000 units, with the following actual total costs incurred:
DM (74,000 lb. @ $1.80) ..$133,200 Total Cost
DL (13,000 hr. @ 8.10).$105,300 Total Cost
Variable overhead$50,200 Total Cost
- Calculate the variances for materials, labor, and variable overhead
- Is the difference between the total actual cost and total standard cost equal to the sum of all the variances? Why?
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