Sol: (1)

Material = (4.3 + 0.10) x 4 x (1 - 0.0427) + 0.41 x (4.3 +0.1) = 18.65

Labor = (1.60 + 0.24) x 11.4 + 3.30 x (1.60 + 0.24) = 27.05
Overhead = (1.60 + 0.24) x 6.10 = 11.22
Total standard cost per unit = 18.65 + 27.05 + 11.22 = $56.92

Sol: (2) (a)

Total labor variance:
= ( AH X AR ) - ( SH X SR )
= (40,300 X $12.14) - (39,780* X $12.00)
= $489,242 - $477,360
= $11,882 U
10,200 X 3.9 = 39,780

Sol: (2) (b)

Labor price variance:
= ( AH X AR ) - ( AH X SR )
= (40,300 X $12.14) - (40,300* X $12.00)
= $489,242 - $483,600
= $5,642 U
Labor quantity variance:
= ( AH X SR ) - ( SH X SR )
= (40,300* X $12.00) - (39,780* X $12.00)
= $483,600 - $477,360
= $6,240 U

Sol: (2)(c)
Labor price variance:

= ( AH X AR ) - ( AH X SR )
= (40,300 X $12.14) - (40,300* X $12.34)
= $489,242 - $497,302
= $8,060 F
Labor quantity variance:
= ( AH X SR ) - ( SH X SR )
= (40,300* X $12.34)- (43,350* X $12.34)
= $497,302 - $534,939
= $37,637 F

Sol: (3)
a)
1) Actual Quantity Actual Price - Standard Quantity Standard Price =
Total Materials Variance
TMV = [(AQ) (AP)] - [(SQ) (SP)]
TMV = (9,700*7.1) (9,600*6.81)
TMV =3,494 U
2) Materials Price Variance = Actual Quantity x Actual Price - Actual
Quantity x Standard Price
MPV = [(AQ) (AP)] - [(AQ) (SP)]
MPV = (9700*7.1) (9700*6.81)
MPV =2813 U
3) Materials Quantity Variance = Actual Quantity Standard Price Standard Quantity Standard Price
MQV = [(AQ) (SP)]-[(SQ) (SP)]
MPV = = (9700*6.81) (9600*6.81)

MPV =681 U
4) Total Labor Variance = Actual Hours Actual Rate - Standard Hours
Standard Rate
TLV = [(AH) (AR)]-[(SH) (SR)]
TLV = [3000) (12.38)]-[3200) (12)]
TLV = 1260 F
5) Labor Price Variance = Actual Hours Actual Rate - Actual Hours x
Standard Rate
LPV = [(AH) (AR)] - [(AH) (SR)]
LPV = [3000) (12.38)]-[3000) (12)]
LPV = 1140 U
6) Labor Quantity Variance = Actual Hours Standard Rate - Standard
Hours Standard Rate
LQV = [(AH) (SR)]- [(SH) (SR)]
LQV = [3000) (12)]-[3200) (12)]
LQV =2400F
b)
Total Overhead Costs:
Variable overhead
Fixed overhead

$ 37,681
15,459

$ 53,140

Overhead Applied:
Standard hours allowed
Rate per direct labor hour
Total Overhead Variance

3,200
$

16

$ 51,200
$

1,940 U