Question
The standard costs and budget figures relating to production of Playfairs single product are: Direct material 2 kgs @ $7.25 per kg $ 14.50 Direct
The standard costs and budget figures relating to production of Playfairs single product are:
Direct material 2 kgs @ $7.25 per kg $ 14.50
Direct labour of an hour @ $18 per hour $ 4.50
Factory Overhead $ 11.50
Standard Cost $ 30.50
Normal production: 12,000 units
Budgeted fixed overhead: $60,000
Overhead is applied on the basis of standard direct labour hours.
Actual data for the period:
Production: 12,250 units
Material purchased: 30,000 kgs @ $7.30 per kg
Material issued to production: 24,515 kgs
Direct labour cost: 3,064 hours @ $18.25 per hour
Factory overhead: $139,420 ($62,000 fixed)
Required
Calculate standard cost variances for DM, DL, VOH and FOH for the current period
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