Prepare a standard cost card for a baseball bat for BatCo. (Round your final answers to 2 decimal places.) Inputs Direct materials Direct labor Overhead Standard quantity or hours pounds DLH DLH Standard price or rate Standard cost per unit

Prepare a standard cost card for a baseball bat for BatCo. (Round your final answers to 2 decimal places.) Inputs Direct materials Direct labor Overhead Standard quantity or hours pounds DLH DLH Standard price or rate Standard cost per unit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8PB: Adam Inc.s records for May include the following information: A. What are Adams standard labor hours...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

100%

BatCo makes baseball bats. Each bat requires 1.00 pounds of wood at $18 per pound and 0.35 direct labor hour at $30 per hour. Overhead is assigned at the rate of $60 per direct labor hour.

Prepare a standard cost card for a baseball bat for BatCo. (Round your final answers to 2 decimal places.)
Standard cost
per unit
Inputs
Direct materials
Direct labor
Overhead
Standard quantity or hours
pounds
DLH
DLH
Standard price
or rate

Assume the actual cost to manufacture 150 bats is $8,625.00. Compute the total cost variance and Identify it as favorable or
unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no varlance.)
Actual cost
Budgeted standard cost
Total cost variance
$
0

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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