The standard costs and variances for direct materials, direct labor, and factory

Question

The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:

Direct materials$98,000             Price variance    $4,300            Quantity variance       $3,000     Direct labor 175,000             Rate variance        2,700        Efficiency variance    6,200         Manufacturing overhead 265,000             Spending variance        3,900        Volume variance        5,000   

Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead.

1) direct materials

2)direct labor

3)manufacturing overhead

Explanation / Answer

1. Standard Direct Material = 98000,

Price Variance = $4300,

Price Variance = (Actual Cost - Standrad Cost)

$4300 = (Actual Cost - $98000),

Actual Cost of Material = $98000 - $4300 = $93700

2. Standard Direct labour = $175000

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