Assignment Requirements
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:
| Production | 12,000 units |
| Fixed overhead | $ 33,000 |
| Variable overhead | $69,000 |
| Direct material(71,750 ft. purchased) | $361,620 |
| Direct Labor (17,900 Hours) | $182,580 |
Case Question
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.
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