Question - A manufactured product has the following information for June.
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Standard
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Actual
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Direct materials
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(6 lbs. @ $9 per lb.)
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51,600 lbs. @ $9.10 per lb.
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Direct labor
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(3 hrs. @ $17 per hr.)
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25,200 hrs. @ $17.40 per hr.
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Overhead
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(3 hrs. @ $12 per hr.)
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$311,100
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Units manufactured
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8,500
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Required -
Compute the standard cost per unit.
Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable.