Total product cost per unit 46 10000 units remaining

Total product cost per unit ........ $46
10,000 units remaining from year 1 x $42.70 (see question 1) = $427,000
34,000 units from year 2 x $46 = $1,564,000
Sales revenue ...................... $ 3,300,000 (44,000 units sold x $75)
Cost of goods sold ................. <1,991,000> (427,000 + 1,564,000)
Variable selling & administrative .. <240,000>
Contribution margin ................ 1,069,000
Fixed overhead ..................... <320,000>
Fixed selling & administrative ..... <180,000>
Net income ......................... $ 569,000

Question 8
Border Company employs a standard costing system and uses a flexible budget to predict
overhead costs at various levels of activity. For the most recent year, Border had
total budgeted overhead costs of $160,000 for 10,000 direct labor hours and $240,000
for 20,000 direct labor hours. During the most recent year, Border generated the
following data:
Actual number of units produced ...................... 2,000 units
Actual variable overhead costs ........................ $135,000
Variable overhead efficiency variance ................. $3,200 Favorable
Standard direct labor hours for each unit produced .... 8.5 hours
Calculate the variable overhead spending variance for the most recent year.
10,000)
x SR)
x 8)
x SR)
x 8)

Question 9
Levram Company uses a standard costing system. During the past year, the following
variances were calculated:
Direct labor rate variance ...................... $23,000 Unfavorable
Direct labor efficiency variance ................ $43,500 Unfavorable
Variable overhead efficiency variance ........... $30,000 Unfavorable
According to Levram's standards, every unit produces should require two direct labor
hours and the standard variable overhead rate is $4 per direct labor hour. During the
past year, Levram used 15% more direct labor hours than should have been used given
the standards.
Calculate the actual direct labor rate per hour paid by Levram Company during the past
year.
x SR)
x SR)
SR
x SR)
x 5.80)
AR