A manufactured product has the following information for August. Direct materials Direct labor Overhead Units manufactured Total manufacturing costs Standard Quantity and Cost 2 pounds per unit @ $9.50 per pound 0.5 hour per unit @ $72 per DLH $96 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for production in August. (3) Compute the total cost variance for August. Actual Results 14,800 units $ 1,520,400
A manufactured product has the following information for August. Direct materials Direct labor Overhead Units manufactured Total manufacturing costs Standard Quantity and Cost 2 pounds per unit @ $9.50 per pound 0.5 hour per unit @ $72 per DLH $96 per DLH (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for production in August. (3) Compute the total cost variance for August. Actual Results 14,800 units $ 1,520,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Exercise 21-7 (Algo) Standard cost per unit, total budgeted cost, and total cost variance LO P2
A manufactured product has the following information for August.
Direct materials
Direct labor
Overhead
Units manufactured
Total manufacturing costs
(1) Prepare the standard cost card showing standard cost per unit.
(2) Compute total budgeted cost for production in August.
(3) Compute the total cost variance for August.
Standard Quantity and Cost
2 pounds per unit @ $9.50 per pound
0.5 hour per unit @ $72 per DLH
$96 per DLH
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Inputs
Direct materials
Direct labor
Overhead
Required 3
Standard quantity or hours
pounds
DLH
DLH
Prepare the standard cost card showing standard cost per unit. (Round your final answers to 2 decimal places.)
Standard price or
rate
X
X
X
< Required 1
Actual Results
Required 2 >
14,800 units
$ 1,520,400
Standard
cost per unit
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