Required information Use the following information for the Exercises below. [The

Question

Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

A manufactured product has the following information for June.

Exercise 21-8 Standard unit cost; total cost variance LO C2

(1) Compute the standard cost per unit.

Direct Materials -

Direct labor-

Overhead-

Total-

(2) Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable.

Standard Actual Direct materials (7 lbs. @ $9 per lb.) 60,100 lbs. @ $9.20 per lb. Direct labor (3 hrs. @ $16 per hr.) 25,300 hrs. @ $16.60 per hr. Overhead (3 hrs. @ $13 per hr.) $ 338,100 Units manufactured 8,500

Explanation / Answer

1 Direct Materials 63 =7*9 Direct labor 48 =3*16 Overhead 39 =3*13 Total standard cost per unit 150 2 Actual cost = (60100*9.2)+(25300*16.6)+338100= $1311000 Standard cost=8500*150= $1275000 Total cost variance = $36000 Unfavorable (1311000-1275000)

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