Reference no: EM132507725

The standard cost sheet for a product is shown.

Manufacturing Costs         Standard Price           Standard Quantity              Standard Cost per Unit

Direct Material                   $4.60 per pound                5.60 pounds                  $25.76

Direct Labor                       $11.59 per hour                     2.10 hours                 $24.34

Overhead                         $1.90 per hour                          2.10 hours                  $3.99

Total                                                                              $54.09

The company produced 3,000 units that required:

1. 17,300 pounds of material purchased at $4.45 per pound
2. 6,240 hours of labor at an hourly rate of $11.89 per hour
3. Actual overhead in the period was $12,270

Question 1: What would the Actual cost of the direct labor be?

Question 2: What would be the favorable/unfavorable variance of the direct materials be?

Question 3: What would be the favorable/unfavorable variance of the direct labor be?

Question 4: What would be the favorable/unfavorable variance of the overhead be?

Direct Materials Cost Variance

Question 5: Calculating Direct Materials Cost Variance, you can see that the actual costs are higher than standard and the actual quantity purchased and used is less than standard. The two variances are combined for a total favorable direct material cost variance of $._____________________

Direct Labor Cost Variance

Question 6: Calculating Direct Labor Cost Variance, you can see that the actual costs are higher than standard and the actual hours are less than standard. The two variances are combined for a total favorable direct labor cost variance of $.________________