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In May 2015 they manufactured 15,700 suits. For the month of May the following standard and actual cost data are available. The normal monthly capacity of the company is 20,000 direct labor hours. All material purchased in May was used in June production.
Standard per Suit
Actual
Direct materials
5.0 yards @ $6.75 per yard
$547,200 for 76,000 yards
Direct labor
1.0 hours @ $11.45 per hour
$165,760 for 14,800 hours
Overhead
(fixed $6.25; variable $3.15)
$120,000 fixed overhead $49,000 variable overhead
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs are $125,000 per month and budgeted variable overhead costs are $63,000 per month.
Required
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