Create a new standard cost card that separates the variable manufacturing overhead per unit and the fixed manufacturing overhead per unit
Flandro Company uses a
labor-hours. The following data are taken from the company’s budget for the current year:
Denominator activity (direct labor-hours) ............... 5,000
Variable
Fixed manufacturing overhead cost ...................... $59,000
The standard cost card for the company’s only product is given below:
Direct materials, 3 yards at $4.40 per yard ........................... $13.20
Direct labor, 1 hour at $12 per hour ...................................... 12.00
Manufacturing overhead, 140% of direct labor cost ............. 16.80
Standard cost per unit .......................................................... $42.00
During the year, the company produced 6,000 units of product and incurred the following costs:
Materials purchased, 24,000 yards at $4.80 per yard ...... $115,200
Materials used in production (in yards) ............................. 18,500
Direct labor cost incurred, 5,800 hours at $13 per hour ... $75,400
Variable manufacturing overhead cost incurred ............... $29,580
Fixed manufacturing overhead cost incurred ................... $60,400
Required:
1. Create a new standard cost card that separates the variable manufacturing overhead per unit and the fixed manufacturing overhead per unit
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