The Starbright Corporation has compiled the following data. The company intends

Question

The Starbright Corporation has compiled the following data. The company intends to use this information to develop standard costs per unit for its single product: 1. Direct materials- $50 per ton Direct labor $12.75 per hour Variable manufacturing overhead-S5 per direct labor hour Fixed manufacturing overhead $18,700 Expected production- 1,700 units Each unit of the company's single product requires 2.5 tons of direct materials and 22.5 hours to manufacture. Refer to the information above. What is the standard total manufacturing overhead cost? S191.250. $18,700. $487,900. $209,950. 2. (8) If the standard quantity of materials is 84,500 units@ $0.15 per unit and the actual quantity is 95,000 unitsS0.12 per unit, then the total materials cost variance is: $2,850 Favorable. $1,575 Unfavorable. $1,275 Favorable. $2,850 Unfavorable. 3. (8) If the standard quantity of materials is 84,500 units@S0.15 per unit and the actual quantity is 95,000 units $0.12 per unit, then the materials quantity variance is: $2,850 Favorable. $1,575 Unfavorable $1,275 Favorable. $2,850 Unfavorable. 4. (8) If the standard quantity of materials is 84,500 units@ $0.15 per unit and the actual quantity is 95,000 units@ S0.12 per unit, then the materials price variance is: c $2,850 Favorable. $1,575 Unfavorable. $1,275 Favorable.

Explanation / Answer

Ans 1 Standard Total manufacturing Overhead Cost Fixed manufacturing Overhead $18,700 Variable Manufacturing Overhead 1700 units*$5*22.5 hours for each unit 191250 Standard Total manufacturing Overhead Cost $209,950 Ans is Option D $209950 Ans 2 Total Material Cost Variance Materail Quantity Variance+Material Price variance 1575U+2850F 1275 F Ans 3 Material Quantity Variance Standard Price*(Actual Qunatity-Standard Quantity) .15*(95000-84500) 1575 U Ans 4 Material Price Variance Actula Quantity*(Actual Price-Standard price) 95000*(.12-.15) 2850 F

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