DATA: Each unit of product requires astandard of 35 machine hours; 375 units are
ID: 2444361 • Letter: D
Question
DATA: Each unit of product requires astandard of 35 machine hours; 375 units are produced thismonth.
Standard costs
Actual costs
Direct materials
750 kilograms at $11 /kg
790 kg at $12/kg
Direct Labor
5250 direct labor hours at $16 perhour
5100 direct labor hours at $14.75 perhour
Factory overhead (FOH)
Normal productive capacity = 12,250 machinehours, or 350 units
FOH data
Variable cost/std hr= $3 per machine hour(m-h)
Fixed cost = $1.50 /m-h
note: multiply by 35 to get the amounts perunit.
Total Variablecost: $40,000
Total fixed cost: $18,000
Standard costs
Actual costs
Direct materials
750 kilograms at $11 /kg
790 kg at $12/kg
Direct Labor
5250 direct labor hours at $16 perhour
5100 direct labor hours at $14.75 perhour
Factory overhead (FOH)
Normal productive capacity = 12,250 machinehours, or 350 units
FOH data
Variable cost/std hr= $3 per machine hour(m-h)
Fixed cost = $1.50 /m-h
note: multiply by 35 to get the amounts perunit.
Total Variablecost: $40,000
Total fixed cost: $18,000
Explanation / Answer
Actualcost: Actual Hours X Actual Rate 5100 X $14.75 $75225 (1) Actual Hours X StandardRate 5100 X $16 $81600 (2) StandardCost: Standard Hours X StandardRate 5250 X $16 $84000 (3) DIRECT LABOURVARIANCE (1) - (2) $75,225 - $81,600 $(6,375) F DIRECT LABOR TIMEVARIANCE (2) - (3) $81,600 - $84,000 $(2400) F
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.