Standard Cost Variance Analysis: Alpha Company produces toys for national distribution. The standard cost card for one o
Posted: Wed May 04, 2022 4:20 pm
Standard Cost Variance Analysis: Alpha Company produces toys for
national distribution. The standard cost card for one of its
products shows the following: Standard allowed Standard cost per
unit Direct Materials 12 ozs. @ $0.56 per oz. $6.72 Direct Labor 2
hrs. @ $5.50 per hr. 11.00 During the month of December, Alpha
produced 2,000 units of the product. Actual purchasing and
production figures for the month were: Direct Materials Purchased:
28,000 ozs., at a total cost of $14,560 Direct Materials Used in
Production: 27,000 ozs. Direct Labor Incurred: 3,900 hrs. at a
total cost of $22,425 REQUIRED: Compute the material and labor
standard cost variances and clearly indicate whether the variance
is Favorable (F) or Unfavorable (U). You must show your
calculations to receive credit.
national distribution. The standard cost card for one of its
products shows the following: Standard allowed Standard cost per
unit Direct Materials 12 ozs. @ $0.56 per oz. $6.72 Direct Labor 2
hrs. @ $5.50 per hr. 11.00 During the month of December, Alpha
produced 2,000 units of the product. Actual purchasing and
production figures for the month were: Direct Materials Purchased:
28,000 ozs., at a total cost of $14,560 Direct Materials Used in
Production: 27,000 ozs. Direct Labor Incurred: 3,900 hrs. at a
total cost of $22,425 REQUIRED: Compute the material and labor
standard cost variances and clearly indicate whether the variance
is Favorable (F) or Unfavorable (U). You must show your
calculations to receive credit.