direct materials...standard cost 85000....price variance...unfavorable....5000..
ID: 2491477 • Letter: D
Question
direct materials...standard cost 85000....price variance...unfavorable....5000.....quantity variance...favorable....3000....direct labor....standard cost....150000....rate variance....standard cost....2700...efficiency variance....unfavorable...6200....manufacturing overhead...standard cost...300000...spending variance....favorable....4000....volume variance....favorable...5000.....Determine the actual costs incurred during the month of May for direct materials, direct labor,
and manufacturing overhead
Explanation / Answer
Actual cost incurred
Direct materials: Standard cost 85,000
plus unfavorable price variance 5,000
less favorable quantity variance 3,000
Total 87,000
Direct labor: Standard cost 150,000
less favorable rate variance 2,700
plus unfavorable efficiency variance 6,200
Total 153,500
Manufacturing overhead: Standard cost 300,000
less favorable spending variance 4,000
less favorable volume variance 5,000
Total 291,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.