Reference no: EM133174390
Question - Xavier Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows:
Direct materials: 6 ounces at $0.50 per ounce $3.00
Direct labor: 0.6 hours at $30.00 per hour 18.00
Variable manufacturing overhead: 0.6 hours at $10.00 per hour 6.00
Total standard variable cost per unit $27.00
During June, 2,000 units were produced. The costs associated with June's operations were as follows:
Material purchased: 18,000 ounces at $0.60 per ounce $10,800
Material used in production: 14,000 ounces -
Direct labor: 1,100 hours at $30.50 per hour $33,550
Variable manufacturing overhead costs incurred $12,980
Required - Compute the direct materials, direct labor, and variable manufacturing overhead variances.
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