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:

Psychophysics

The scientific study of the relationship between stimuli (which are physical) and the sensations and perceptions they produce in the observer.

Physical Energy

The capacity to perform work or to produce physical changes within the body or environment, stemming from physical or chemical resources.

Sensory Physiology

The study of how organisms perceive and respond to physical stimuli in their environment through sensory organs.

Constant Stimuli

A method in psychophysics used to measure the sensitivity of sensory systems by presenting stimuli of constant intensity but differing in duration or frequency.