STANDARD Costs

During January 20XX, Speedway Toys, Inc., manufactured 4,800 toy cars. The costs of materials, labor, and overhead were as follows:

Material Amount

Plastic 7,050 lb at $3.60 per lb

Motors 4,975 motors at $6.24 per motor

Wheels and axles 4,880 sets at $.425 per set

Direct Labor

Hours Rate

Molders 930 hr $15.20 per hour

Assemblers 1510 hr $18.40 per hour

Overhead Amount

Variable $13,120

Fixed $12,050

You are to prepare the following for the month of January 20XX. For all variances computed, show whether they are favorable or unfavorable.

B-1 Complete a summary of materials costs.

B-2 Complete a summary of labor costs.

B-3 Compute the quantity and price variances for each material.

B-4 Compute the efficiency and rate variance for each type of labor.

B-5 Compute the total manufacturing overhead variance. Analyze the total overhead variance, using the three-variance analysis method.

B-6 Record the following in general journal form (omit explanations):

a.Charge the raw materials to production and record the materials variances.

b.Charge the labor to production and record the labor variances.

c.Charge the manufacturing overhead to production and record the overhead variances.

d.Transfer the completed units to finished goods.

I am having hard time computing the standard cost for materials and labor. Can someone please help me figure some of this problem out? If you need more information please let me know. Thank you!