Standard variable costs relating to a single kit are given below:
- Standard Quantity Standard Price Standard
- Or Hours or Rate Cost
- Direct Materials ? $6 per yard $?
- Direct Labor ? ? ?
- Variable MOH ? $2 per DLH ?
- Total standard cost per kit $42
During August, 500 kits were manufactured and sold. Selected information relating to the month's production is given below: (for the month)
- Materials Direct Variable
- Used Labor MOH
- Total standard cost ? $8,000 $1,600
- Actual cost incurred $10,000 ? $1,620
- Material price variance ?
- Material quantity variance $600U
- Labor rate variance ?
- Labor efficiency variance ?
- Variable O/H spending variance ?
- Variable O/H efficiency variance ?
The following additional information is available for Augusts' production of kits:
- Actual direct labor-hours 900
- Difference between standard and actual cost
- per kit produced during August $0.14 U
REQUIRED:
1. What was the total standard cost of the materials used during August?
2. How many yards of material are required at standard per kit?
3. What was the materials price variance for August?
4. What is the standard direct labor rate per hour?
5. What was the labor rate and efficiency variance for August?
6. What was the variable overhead spending variance for August? The variable overhead efficiency variance?
7. Complete the standard cost card for one kit shown at the beginning of the problem.