Variances Bill's Bowling Balls uses a standard cost system. The standard cost for one product (a high friction 10-pin bowling ball) are: Materials Labour Variable Overhead Fixed Overhead Planned production Planned machine hours Quantity 2 kgs 2.50 hours ? Materials used in Actual Hours Labour Total cost Actual machine hours Actual variable Actual fixed overhead Total Price / Rate $ 5.00 $ 10.00 $12.50 $ 31.25 ? The budget for the upcoming month includes the following information: Estimated variable overhead costs Estimated fixed overhead costs ? $30,000 $60,000 Overhead is applied to production based on machine hours. (2 machine hours per ball) At the end of the month, the accounting records indicate: Actual production Materials purchased 4,500 units 10,000 kgs @ $5.25 per kg 9,250 kgs 12,000 hours $145,000 8,500 machine hours $26,000 $55,000 4,000 units 8,000 machine hours 

REQUIRED: 

1. Complete the standard cost card. 

2. Compute the variances for materials, labour, variable and fixed overhead. Id

Answer rating: 100% (QA)

1 Complete the standard cost card Standard Cost Quantity Rate Amount Materials 2 kgs 500 1000 Labour ... View the full answer