Standard cost s and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 250 units of product were as follows:
Standard Costs
Direct materials................................. 500 Kilograms at $25 per kilogram
Direct labor........................................4,000 direct labor hours at $19 an hour
Factory overhead..................................Productive capacity of 100%, 10,000
NOTE: Each unit of product requires a standard of 32 machine hours.
Actual Costs
Direct materials.................................. 490 kilograms at $24.75 per kilogram
Direct labor....................................... 4,200 direct labor hours at $19.20 an hour
Factory overhead..................................Total variable cost, $24,750
Total fixed cost, $20,000
INSTRUCTIONS: Indicate the amount and nature (favorable or unfavorable) of each of the following variances. Show your work on the amounts for partial credit.
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VARIANCE
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Answers
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46. Direct materials quantity variance
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$
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F
U
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47. Direct materials price variance
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$
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F
U
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48. Direct labor time or efficiency variance
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$
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F
U
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49. Direct labor rate or price variance
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$
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F
U
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