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Unformatted text preview: STANDARD COSTS Xavier Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce $ 3 Direct labor: 1.8 hours at $10 per hour .. 18 Variable manufacturing overhead: 1.8 hours at $5 per hour . 9 Total standard variable cost per unit . $30 During June, 2,000 units were produced. The actual costs associated with Junes operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce $10,800 Material used in production: 14,000 ounces...
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- Spring '11