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:

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

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

Variances    Standard Cost Unfavorable Favorable   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

Standard Cost Price /Rate variance Qty /Efficiency Variance Actual cost Direct Materials                  98,000           (4,300)            3,000             99,300 =Std cost-postive variance +negative variance Direct Labor                175,000              2,700          (6,200)          178,500 =Std cost-postive variance +negative variance Standard OH Spending Variance Vol Variance Actual Overhead Maufacturing Overhead                265,000              3,900            5,000          256,100 =Std Mfg OH-Favorable Variances

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