Acme Manufacturing uses standard costing. Using the following data, calculate th

Question

Acme Manufacturing uses standard costing. Using the following data, calculate the Material Cost Variance. Std Materials 5 sheets at $5.90 29.5 Std Direct Labor 2 hrs at $10 20 Std Mfg Ovrhd 2 direct labor hrs at $5 10 Total Standard Cost per unit 60 Actual Material Price 5 sheets at $6.20 31 Actual Sheets Used 60000 This problem is a variation of the problem on page 204 chapter 24 Remember that when analyzing variances a negative result can be favorable in some cases and unfavorable in others and the same goes for positive results. You have to use some common sense.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Standard materials per unit                     5.00 Std Materials price per sheet                     5.90 Standard Materials cost                   29.50 Actual materials per unit                     5.00 Actual Material Price per sheet                     6.20 Actual Materials Cost                   31.00 Material Cost Variance = 29.50 - 31 Material Cost Variance = 1.50 U

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