To solve the attached problem
Strategic Cost and Managerial Accounting
Case Study: Standard Costing
Case Summary: ABC Manufacturing has the following standard cost sheet for one of its products:
|Direct materials (6 ft. @ $ 5)||$30|
|Direct Labor (1.5 Hours@ $10)||15|
|Fixed Overhead (1.5 Hours @ $2)||3|
|Variable overhead (1.5 Hours @ $ 4)||6|
|Standard unit cost:||$54|
Expected activity of 17,000 Hours
During the most recent year, the following actual results were recorded:
|Fixed overhead||$ 33,000|
|Direct material(71,750 ft. purchased)||$361,620|
|Direct Labor (17,900 Hours)||$182,580|
Compute the following:
- Direct materials price and usage variances.
- Direct labor rate and efficiency variances.
- Variable overhead spending and efficiency variances.
- Fixed overhead spending and volume variances.