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Standard Quantity or Standard Price Standa Cost Hours or Rate Direct materials Direct labor Variable nanufacturing overhead Total standard cost per unit 3.6 pounds 2.20
Standard Quantity or Standard Price Standa Cost Hours or Rate Direct materials Direct labor Variable nanufacturing overhead Total standard cost per unit 3.6 pounds 2.20 per pound 7.92 3.85 1.28 0.5 hours 7.70 per hour 0.4 hours* 3.20 per hour 13.05 Based on machine-hours. During June the plant produced 8,000 pools and incurred the following costs: a. Purchased 33,800 pounds of materials at a cost of $2.65 per pound. b. Used 28,600 pounds of materialsin production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 4,600 direct labor-hours at a cost of $7.40 per hour. d. Incurred variable manufacturing overhead cost totaling $12,600 for the mo nth. A total of 3,500 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Required: 1. Compute the following variances for June a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances
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