Compute the cost variance and classify it as favorable


BatPro makes metal baseball bats. Each bat requires 1 kg. of aluminum at $20 per kg. and 0.50 direct labor hours at $16 per hour. Overhead is assigned at the rate of $40 per labor hour. Assume the actual cost to manufacture one metal bat was $54. Compute the cost variance and classify it as favorable or unfavorable.

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Accounting Basics: Compute the cost variance and classify it as favorable
Reference No:- TGS0558827

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