P9-1.16A Search Dean

P9-1.16A Search Dean - 1 Materials $16,800 Directlabor...

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1 Standard cost for March production: Materials  $16,800  Direct labor  10,500 Variable manufacturing overhead  $4,200  Total standard cost (a)  $31,500  Number of backpacks produced (b)  1,000 Standard cost of a single backpack (a) ÷ (b)  $31.50  2 Standard cost of a single backpack (above)  $31.50  Deduct difference between standard and actual cost  0.15 Actual cost per backpack  $31.35  3 Total standard cost of materials allowed during March (a)  $16,800  Number of backpacks produced during March (b)  1,000 Standard materials cost per backpack (a) ÷ (b)  $16.80  4 Standard cost of material used  $16,800  Actual cost of material used  15000 Total variance  $1,800  Favorable The price and quantity variances together equal the total variance. If the quantity variance is $1,200 U, then the price variance must be $3,000 F: Price variance  $ 3,000 F Quantity variance  U
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This note was uploaded on 12/17/2011 for the course ECON 101 taught by Professor Chapman during the Spring '11 term at Arcadia University.

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