standard costing

CFS Company manufacturer a product and information about it follows:

Standard Cost Sheet per unit of output

Iten Quantity Price (rate) Cost

Direct materials 0.45 $5.20 $2.34

Direct labour 0.12 $13.50 $1.62

Variable overhead 0.12 $5.00 $0.60

Fixed overhead 0.12 $10.00 $1.20

Overhead recovery/application/charging rates

Item Budgeted output of units Budgeted hours per unit Total budgeted hours (units * hrs/unit) Budgeted overhead cost Overhead rate (cost/basis)

Variable overhead 1,500 0.12 180 $900 $5

Fixed overhead 1,500 0.12 180 $1,800 $10

Actual results

Units of output 1200

Direct materials cost $3,060

Direct materials quantity (kgs) 600 if given total materials cost 3060 and price 5.1, can get quantity 600 kg by logic: cost/price per kg = kg

Direct materials price per kg $5.10 *if given total materials cost 3060 and quantity 600 kg, can get price 5.2=10 by logic: cost/kg = price per kg

Direct labour cost $2,100 Direct labour hours 150 ' if given total labour cost 2100 and rate 14, can get quantity 150 hours by logic: cost/rate per hour = hrs

Direct labour rate per hour $14.00 if given total labour cost 2100 and hrs 150, can get rate by logic: cost/hrs = rate per hour

Variable overhead cost S705 in practice from addition of subtotals of costs incurred e.g. cost electricity hours etc Fixed overhead cost $1,650 in practice from addition of subtotals of costs incurred e.g. factory rent etc

Required A. materials price variance

B. materials quantity (usage) variance

C. total materials variance

D. labour rate variance

E. labour efficiency (time) variance

F. total labour variance

G. variable overhead spending variance

H. variable overhead efficiency variance

I. total variable overhead variance

J. fixed overhead spending/budget variance

K. fixed overhead volume variance

L. total fixed overhead variance