The Standard Costs for a Unit of Product Are Shown

question 50

Essay

The standard costs for a unit of product are shown below. $\begin{array}{llcc} \text { Materials: } & \text { 2 pounds at \( \$ 1.50 \) per pound } &\$3.00 \\ \text { Labor:} & \text { \( 3 / 4 \) hours at \( \$ 10.00 \) per hour }&7.50 \\ \text {Overhead: } & \text { \( 60\%\) of direct labor } &4.50\\\end{array}$
During July, Job N-5 for 200 units was completed. The actual costs of the job are shown below. $\begin{array}{llcc} \text { Materials: } & \text { 408 pounds at \( \$ 1.45 \) per pound } &\$591.60 \\ \text { Labor:} & \text { 142 hours at \( \$ 10.15 \) per hour }&1,441.30 \\ \text {Overhead Applied: } & \text { \( 60\%\) of direct labor } &864.78\\\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:

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George Grenville

A British Whig statesman who served as Prime Minister of Great Britain from 1763 to 1765, known for his role in passing the Stamp Act, which contributed to the American Revolution.

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