ting to a single backpack are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials ? $ 6.00 per yard $ ? Direct labor ? ? ? Variable manufacturing overhead ? $ 2 per direct labor-hour ? Total standard cost per unit $ ?
ting to a single backpack are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials ? $ 6.00 per yard $ ? Direct labor ? ? ? Variable manufacturing overhead ? $ 2 per direct labor-hour ? Total standard cost per unit $ ?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter23: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...
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Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:
Standard Quantity or Hours | Standard Price or Rate | ||||
---|---|---|---|---|---|
Direct materials | ? | $ 6.00 per yard | $ ? | ||
Direct labor | ? | ? | ? | ||
Variable manufacturing overhead | ? | $ 2 per direct labor-hour | ? | ||
Total standard cost per unit | $ ? |
Overhead is applied to production on the basis of direct labor-hours. During March, 400 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:
Materials Used | Direct Labor | Variable Manufacturing Overhead | |||
---|---|---|---|---|---|
Total standard cost allowed* | $ 9,120 | $ 5,040 | $ 960 | ||
Actual costs incurred | $ 5,520 | ? | $ 2,620 | ||
Materials price variance | ? | ||||
Materials quantity variance | $ 1,920 U | ||||
Labor rate variance | ? | ||||
Labor efficiency variance | ? | ||||
Variable overhead rate variance | ? | ||||
Variable overhead efficiency variance | ? |
*For the month's production.
The following additional information is available for March’s production:
Actual direct labor-hours | 600 | |
---|---|---|
Difference between standard and actual cost per backpack produced during March | $ 0.20 | F |
What was the variable overhead rate variance for March? The variable overhead efficiency variance?
Prepare a standard cost card for one backpack.
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