PROBLEM Direct material Direct labor STD Quantity 3.0 pounds 5.5 hour Standard price rate Tk. 8 per

PROBLEM
  

 

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Direct material Direct labor STD Quantity 3.0 pounds 5.5 hour Standard price rate Tk. 8 per pound 3.5 hour Tk.12 per hour Tk. 6 per hour Standard cost Tk. 24.00 Tk. 66.00 Tk. 21.00 Variable manufacturing overhead Total standard cost per unit Actual quantity purchased 7,000 pounds and actual quantity consumed 6,500 pounds. Actual price of direct material Tk. 3.80 per unit. Actual hours worked 3,800 hours @ rate Tk. 10 per hour. Actual manufacturing overhead Tk. 16,550. Total units produced 2,000 units. You are required to compute: Tk.111.00 Direct material Direct labor STD Quantity 3.0 pounds 5.5 hour Standard price rate Tk. 8 per pound 3.5 hour Tk.12 per hour Tk. 6 per hour Standard cost Tk. 24.00 Tk. 66.00 Tk. 21.00 Variable manufacturing overhead Total standard cost per unit Actual quantity purchased 7,000 pounds and actual quantity consumed 6,500 pounds. Actual price of direct material Tk. 3.80 per unit. Actual hours worked 3,800 hours @ rate Tk. 10 per hour. Actual manufacturing overhead Tk. 16,550. Total units produced 2,000 units. You are required to compute: Tk.111.00

Answer rating: 100% (QA)

To compute the variances we need to compare the standard costs with the actual costs Lets calculate each variance step by step i Material price varian... View the full answer