Cardinal Company has determined the following standard cost data necessary to manufacture one unit of its primary
Question:
Cardinal Company has determined the following standard cost data necessary to manufacture one unit of its primary product:
Direct Materials….. (6 pounds @ $20)
Direct Labor…………. .(8 hours @ $15)
During 20X1, Cardinal produced only 1 unit of product. This unit required 7 pounds of direct material (a total of 8 pounds were purchased at a cost of $18 per pound). In addition, total payroll costs for direct labor during 20X1 were $130 (10 hours @ $13 per hour).
Required:
Answer the following questions, indicating BOTH the dollar amount of each variance and whether each variance is FAVORABLE (F) or UNFAVORABLE (U).
The materials price variance was $__
The materials efficiency (usage) variance was $__
The labor rate (price) variance was $__
The labor efficiency (usage) variance was $__
The total cost of the unit completed in 20X1 and transferred from Work in Process to Finished Goods was $
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang-Hsuan Chen, Gail Cook