Kelompok 4 :
1. Ivanna Meylia Handranatan Tang 18080574022
2. Helma Renanda YP 18080574030
3. Dwi Andriana 18080574070
4. Ariyana Fitria 18080574079
5. Fuad Muttaqin 18080574136
6. Candra kusuma W 18080574141
PROBLEM
1. The following standard costs were developed for one of Commodore Company's products:
STANDARD COST CARD
PER UNIT
Direct materials: 4 pounds $5 per pound $20.00
Direct labor: 1.5 hours $20 per hour 30.00
Variable overhead: $10 per hour ?
Fixed overhead ?
Total standard cost per unit ?
The following information is available regarding the company's operations for the period:
Units produced 15,000
Materials purchased 90,000 pounds at $3.60 per pound
Materials used 80,000 pounds
Direct labor 9,000 hours at $16.50 per hour
Overhead incurred:
Variable $220,000
Fixed $640,000
Budgeted fixed overhead for the period is $600,000, and expected capacity for the period is 20,000 direct
labor hours.
Required:
a. Calculate the standard fixed overhead rate.
b. Complete the standard cost card for the product.
ANS:
a. $30 per DLH $600,000/20,000 hours
b. STANDARD COST CARD
PER UNIT
Direct materials: 4 pounds $5 per pound $ 20.00
Direct labor: 1.5 hours $20 per hour 30.00
Variable overhead: 1.5 hours $10 per hour 15.00
Fixed overhead: 1.5 hours $30 per hour 45.00
Total standard cost per unit $110.00
DIF: 2 REF: p. 371-372 OBJ: 2
NAT: AACSB Analytic | IMA Performance measures
2. Lisle Manufacturing has developed the following standards for one of its products:
STANDARD VARIABLE COST CARD
ONE UNIT OF PRODUCT
Direct materials: 10 yards $10 per yard $100.00
Direct labor: 4 hours $16 per hour 64.00
Variable overhead: 4 hours $10 per hour 40.00
Total standard variable cost per unit $204.00
The company records materials price variances at the time of purchase.
During August, Lisle purchased 16,000 yards of material costing $169,600 and used 12,500 yards in its
manufacturing process. There was no material inventory at August 1. Lisle recorded a total of 4,600 direct
labor hours worked for a total payroll of $72,680. Lisle manufactured 1,200 units in August.
Required:
a. Calculate the materials price variance and indicate whether it is favorable or unfavorable.
b. Calculate the materials usage variance and indicate whether it is favorable or
unfavorable.
c. Calculate the labor rate variance and indicate whether it is favorable or unfavorable.
d. Calculate the labor efficiency variance and indicate whether it is favorable or
unfavorable.
ANS:
a. $169,600 - (16,000 yards $10) = $9,600 U
b. $10 (12,500 yards - (1,200 units 10 yards)) = $5,000 U
c. $72,680 - (4,600 hours $16) = $920 F
d. $16 (4,600 hours - (1,200 units 4 hours)) = $3,200 F
DIF: 2 REF: p. 376-381 OBJ: 4
NAT: AACSB Analytic | IMA Performance measures
3. Georgia Manufacturing Company has developed the following standards for one of its products:
STANDARD VARIABLE COST CARD
ONE UNIT OF PRODUCT
Direct materials: 6 yards $4.50 per yard $27.00
Direct labor: 2.5 hours $5 per hour 12.50
Variable overhead: 2.5 hours $4 per hour 10.00
Total standard variable cost per unit $49.50
The company records materials price variances at the time of purchase.
The following activities occurred during the month of April:
Materials purchased 14,000 yards costing $57,750
Materials used 12,500 yards
Units produced 2,000 units
Direct labor 4,500 hours costing $24,300
Required:
a. Calculate the materials price variance and indicate whether it is favorable or unfavorable.
b. Calculate the materials usage variance and indicate whether it is favorable or unfavorable.
c. Calculate the labor rate variance and indicate whether it is favorable or unfavorable.
d. Calculate the labor efficiency variance and indicate whether it is favorable or unfavorable.
ANS:
a. $57,750 - (14,000 yards × $4.50) = $5,250 F
b. $4.50 (12,500 yards - (2,000 units × 6 yards)) = $2,250 U
c. $24,300 - (4,500 yards × $5) = $1,800 U
d. $5 (4,500 hours - (2,000 units × 2.5 hours)) = $2,500 F
