Solution-Compute all of the materials and labor

Compute all of the materials and labor

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Reference no: EM131870896

Problem - Mifflin Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials-1 pound plastic at $7.00 per pound	$ 7.00
Direct labor-1.6 hours at $11.80 per hour	18.88
Variable manufacturing overhead	11.08
Fixed manufacturing overhead	3.68
Total standard cost per unit	$40.64

The predetermined manufacturing overhead rate is $9.23 per direct labor hour ($14.76 ÷ 1.6). It was computed from a master manufacturing overhead budget based on normal production of 7,840 direct labor hours (4,900 units) for the month. The master budget showed total variable costs of $535,460 ($7.40 per hour) and total fixed overhead costs of $195,370 ($2.70 per hour). Actual costs for October in producing 4,810 units were as follows.

Direct materials (4,990 pounds)	$ 36,926
Direct labor (7,520 hours)	93,248
Variable overhead	54,497
Fixed overhead	18,903
Total manufacturing costs	$203,574

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

Instructions - Compute all of the materials, labor, and total overhead variances.

Reference no: EM131870896

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Compute all of the materials and labor

Reference no: EM131870896

Reference no: EM131870896

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