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Unformatted text preview: .. Example: Basic Labor Time per Unit (hours) 2.0 Allowance for Breaks/Personal Needs 0.1 Allowance for Cleanup 0.2 Definitions & Examples Allowance for Rejects 0.3 Standard Labor-hours per Unit of Product 2.6 *Standard Labor Cost per Unit: $6.50 x 2.6 = $16.9 The following are general models used with standard cost to analyze variances as described in the textbook (page 343 EXHIBIT 8-3) : Price and Quantity Variances: The following information is available to make 1 unit of Product ZZXX : Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost per Unit Direct materials 2 $5.00 per lb Direct labor 3.5 15.00 per hour Variable manufacturing overhead 2.5 3.00 per hour Total std unit cost ??? Problem Inputs Standard Standard Price or Standard Cost per Solution Quantity or Hours Rate Unit Direct materials 2 $ 5.00 per lb $ 10.00 Direct labor 3.5 15.00 per hour 52.50 Variable manufacturing overhead 2.5 3.00 per hour 7.50 Total std unit cost $ 70.00...
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This note was uploaded on 04/21/2011 for the course ACTG 211 taught by Professor Staff during the Spring '08 term at Ill. Chicago.
- Spring '08
- Managerial Accounting