WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Metres Unit Price Per Metre $10.00 $2.00 $2.20 Standard Actual 5.2 $11.44 Direct labour Hours Hourly Rate $5.00 $5.50 Standard 3 $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard 4 $3.00 $12.00 Actual 4.2 $3.10 $13.02 Total unit cost $37.00 $42.06 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Metres Unit Price Per Metre $10.00 $2.00 $2.20 Standard Actual 5.2 $11.44 Direct labour Hours Hourly Rate $5.00 $5.50 Standard 3 $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard 4 $3.00 $12.00 Actual 4.2 $3.10 $13.02 Total unit cost $37.00 $42.06 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.11E: Factory overhead cost budget Nutty Candy Company budgeted the following costs for anticipated...

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