Team Final Paper

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In order to prepare a Standard Cost Card for one unit of the product which equals $110, the calculation for the direct materials of the unit would be 5 pounds at $14 per pound ($60 per unit), the direct labor per unit: 2 hours at $15 per hour ($30 per unit), and the variable overhead: 2 hours at $10 per hour ($20 per unit), once calculated and multiplied, $60 times $30 times $20 the standard cost card for one unit of the product will come out to equal $110. The raw materials cost would be included in the company's planning budget for April, and the cost of the raw materials cost $180,000 (3,000x$60). The materials price variance for April, and would it be favorable or unfavorable for the company? The price variance is $30,000, and it is unfavorable because they spent more than they had budgeted for or wanted to. What is the materials quantity variance for April, would it be favorable or unfavorable for the company.? The materials quantity variance is 100, and it is unfavorable because they made less than they thought they would. What would the direct labor cost would be included in the company's planning budget for April? The direct labor cost would be $90,000 as stated in the companies original budgeting spreadsheet.
Jason, yang The direct labor cost which would be included in the company's flexible budget for April is 2,900*$30=$87,000 I used the sales in April multiplied by direct labor hours to get the flexible budget for April is $87,000. The labor efficiency rate for April is (2,900x5-6,000) x$15= I use the number of units sold times 5 minus 6000 to get the total, then multiply by $15 to get 3000. Unfavorable because they are paying the employees more than what they budgeted to spend. The labor rate variance for April is (15-16) x6000=-6,000 Unfavorable Because they need more people to work. The variable manufacturing overhead cost that would be included in the company's planning budget for April is 3000x20=60,000 The variable manufacturing overhead cost that would be included in the company's flexible budget for April is (2900x2-6,000) x$10=$2000 The variable overhead rate variance for April is 6000x10- 65,000=-5000 Unfavorable because the overhead rate is higher than what they expected.
The variable overhead efficiency v ariance for April is (2,900x2-6,000x$15) =$3000 Unfavorable Because the overhead rate is more than what they expected
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