The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: Labour rate variance $657.50 unfavourable Labour efficiency variance $1,075favourable Variable overhead efficiency variance $350 favourable Number of units produced 11,000 Standard labour rate per direct labour hour $21.50 Standard variable overhead rate per direct labour hour $7 Actual labour hours used 13,150 Actual variable manufacturing overhead costs $93,500 What are the standard hours allowed to make one unit of finished product? What was the total standard cost for variable overhead for May? What was the total standard cost for direct labour for May?
The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: Labour rate variance $657.50 unfavourable Labour efficiency variance $1,075favourable Variable overhead efficiency variance $350 favourable Number of units produced 11,000 Standard labour rate per direct labour hour $21.50 Standard variable overhead rate per direct labour hour $7 Actual labour hours used 13,150 Actual variable manufacturing overhead costs $93,500 What are the standard hours allowed to make one unit of finished product? What was the total standard cost for variable overhead for May? What was the total standard cost for direct labour for May?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...
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The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
| Labour rate variance | $657.50 unfavourable |
| Labour efficiency variance | $1,075favourable |
| Variable |
$350 favourable |
| Number of units produced | 11,000 |
| Standard labour rate per direct labour hour | $21.50 |
| Standard variable overhead rate per direct labour hour | $7 |
| Actual labour hours used | 13,150 |
| Actual variable manufacturing overhead costs | $93,500 |
What are the standard hours allowed to make one unit of finished product?
What was the total standard cost for variable overhead for May?
What was the total standard cost for direct labour for May?
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