Chapter $23$ Practice Problem #$4$

ABC Company has established the following standard production costs.

Standard Cost Table $($based on one unit$)$:

$\backslash$table$[[$Oirect Material,$16\mathrm{.}75$ pounds @ $$20\mathrm{.}00$ per pound$],[$Direct Labor,$300$ minutes @ $$32\mathrm{.}50$ per hour$]]$

In the month of July, the company used $1,678,095$ pounds of material, of which $80\%$ were direct materials. The total cost for the direct materials was $$30,205,710.$ The total wages for the factory were $$14,553,926\mathrm{.}70,$ of which $95\mathrm{.}5\%$ were for direct labor workers. The actual direct labor hours were $452,000,$ and the company actually produced $90,000$ units.

Directions: To receive credit for this assignment, students must include the formulas and calculations using words & numbers.

Calculate the total standard cost for one unit. $($Round dollars to two decimal points $\{$$$|2\mathrm{.}96\})$

Calculate the Total Direct Materials Variance $($Round dollars to two decimal points $\{$i$.$e$.$ $$12\mathrm{.}96).$

Calculate the Total Direct Labor Variance $($Round dollars to two decimal points $\{$i$.$e$.$ $$12\mathrm{.}96).$