Question

A company's product requires 3 pounds of direct materials at $21.60 per pound and 2 direct labor hours at $46.80 per hour. The company uses an overhead rate of $41.80 per direct labor hour to assign overhead. This period's actual cost to manufacture 125 units is $32,200. Calculate the total cost variance and indicate whether it is favorable or unfavorable. Note: For the variance, select favorable, unfavorable, or no variance.

Name: a companys product requires 3 pounds of direct materials at 2160 per pound and 2 direct labor hours at 4680 per hour the company uses an overhead rate of 4180 per direct labor hour to assign 64978
Uploaded: 2023-12-18T02:21:04-08:00
Duration: 2 min 4 s
Channel: Madhur L
Description: a companys product requires 3 pounds of direct materials at 2160 per pound and 2 direct labor hours at 4680 per hour the company uses an overhead rate of 4180 per direct labor hour to assign 64978

          A company's product requires 3 pounds of direct materials at $21.60 per pound and 2 direct labor hours at $46.80 per hour. The company uses an overhead rate of $41.80 per direct labor hour to assign overhead. This period's actual cost to manufacture 125 units is $32,200. Calculate the total cost variance and indicate whether it is favorable or unfavorable.
Note: For the variance, select favorable, unfavorable, or no variance.

Added by Michelle C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

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A company's product requires 3 pounds of direct materials at $21.60 per pound and 2 direct labor hours at $46.80 per hour. The company uses an overhead rate of $41.80 per direct labor hour to assign overhead. This period's actual cost to manufacture 125 units is $32,200. Calculate the total cost variance and indicate whether it is favorable or unfavorable. Note: For the variance, select favorable, unfavorable, or no variance.