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10. XYZ Corp operates under system of standard Costing within a single cost centre. The standard cost details are as follows: Direct material - 5kg @ $4.2 Direct labor - 3 hours @ $3 Factory overhead - $1.2 per labor hour. The budgeted production schedule for the month of May,2019 was 40,000 units. However, 40,960 units were completed during the month. No opening or closing Work-in-progress. Purchases during the month were 225,000 kg of material @ $4.5 per kg.

10. XYZ Corp operates under system of standard Costing within a single cost centre. The standard cost details are as follows: Direct material - 5kg @ $4.2 Direct labor - 3 hours @ $3 Factory overhead - $1.2 per labor hour. The budgeted production schedule for the month of May,2019 was 40,000 units. However, 40,960 units were completed during the month. No opening or closing Work-in-progress. Purchases during the month were 225,000 kg of material @ $4.5 per kg.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 9P: USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted,...
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10. XYZ Corp operates under system of standard Costing within a single cost centre. The standard cost details are as follows: Direct material – 5kg @ $4.2 Direct labor - 3 hours @ $3 Factory overhead - $1.2 per labor hour. The budgeted production schedule for the month of May,2019 was 40,000 units. However, 40,960 units were completed during the month. No opening or closing Work-in-progress. Purchases during the month were 225,000 kg of material @ $4.5 per kg. Actual Production and Sales record for the month: Materials used 205,600 kgs Direct Labor Cost (121,200 hrs) $ 387,840 Factory Overhead Cost $ 100,000 Sales 40,000 units. Selling Price shall have a mark-up of 20% on selling price. 1. Calculated material variance. 2. Calculated Labor Variances. 3. Calculated Factory overhead Variance. 4. Prepare Income Statement for May 2019 showing actual Gross Margin.
Transcribed Image Text:10. XYZ Corp operates under system of standard Costing within a single cost centre. The standard cost details are as follows: Direct material – 5kg @ $4.2 Direct labor - 3 hours @ $3 Factory overhead - $1.2 per labor hour. The budgeted production schedule for the month of May,2019 was 40,000 units. However, 40,960 units were completed during the month. No opening or closing Work-in-progress. Purchases during the month were 225,000 kg of material @ $4.5 per kg. Actual Production and Sales record for the month: Materials used 205,600 kgs Direct Labor Cost (121,200 hrs) $ 387,840 Factory Overhead Cost $ 100,000 Sales 40,000 units. Selling Price shall have a mark-up of 20% on selling price. 1. Calculated material variance. 2. Calculated Labor Variances. 3. Calculated Factory overhead Variance. 4. Prepare Income Statement for May 2019 showing actual Gross Margin.
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