COGS is based on a standard cost that is comprised of $50 material cost per unit, $25 labor cost per unit and $10 overhead allocation cost / unit.

1,000,000 units were sold in 2019; 800,000 units were produced in 2019

Labor inefficiencies resulted in an incremental 15 minutes of labor charge / unit at the rate of $12.50/hour.

The material purchase price variance averaged $3.12/unit

Calculate:

COGS - Standard

COGS - Material variance

COGS - Labor variance

Answer rating: 100% (QA)

To calculate the different components of the Cost of Goods Sold COGS based on the given information ... View the full answer