The Standard Costs for a Unit of Product Are Shown

question 40

Short Answer

The standard costs for a unit of product are shown below.
$$\begin{array} { l l r } \text { Materials: } & 2 \text { pounds at } \$ 1.00 \text { per pound } & \$ 2.00 \\\text { Labor: } & 1 \text { hours at } \$ 10.00 \text { per hour } & 10.00 \\\text { Overhead: } & 60 \% \text { of directlabor } & 6.00\end{array}$$
During June, Job N-5 for 100 units was completed. The actual costs of the job are shown below.
$\begin{array}{llll}\text { Materials: } & 300 &\text { pounds at } \$ 1.45 \text { per pound } & \$ 435.00 \\\text { Labor: } & 200& \text { hours at } \$ 9.50 \text { per hour } & 1,900 \\\text { Overhead Applied: } & 60 \% &\text { of direct labor } & 1,140\end{array}$
1. What is the total cost variance between actual cost and standard cost?
2. What is the total material variance?
3. What is the material quantity variance?
4. What is the material price variance?

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Definitions:

Psychoticism

A personality pattern typified by aggressiveness and interpersonal hostility.

Schizotypal Personality Disorder

A mental health issue identified by extreme fear of social interactions, erratic thinking, suspiciousness, episodes of feeling disconnected from reality, occasional psychosis, and often unconventional beliefs.

Eccentric Thoughts

Unconventional or unusual thinking patterns that deviate from societal norms.

Cultural Beliefs

The shared norms and values that guide the behavior and decisions of a group of people within a particular culture.