Question

Basil Tooling uses a standard cost system to account for the costs of its one product. Standards are 4 sheets of 1/2-inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Basil Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for 8,770 hours worked. Calculate the: 1. Total Direct Material Variance 2. Total Direct Labor Variance

Name: basil tooling uses a standard cost system to account for the costs of its one product standards are 4 sheets of 12 inch steel at 110 per sheet and 14 hours of labor at a standard wage rate o 96344
Uploaded: 2023-08-02T04:55:57-08:00
Duration: 3 min 33 s
Channel: Akash M
Description: basil tooling uses a standard cost system to account for the costs of its one product standards are 4 sheets of 12 inch steel at 110 per sheet and 14 hours of labor at a standard wage rate o 96344

          Basil Tooling uses a standard cost system to account for the costs of its one product. Standards are 4 sheets of 1/2-inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Basil Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for 8,770 hours worked.

Calculate the:
1. Total Direct Material Variance
2. Total Direct Labor Variance

Added by Eric E.

Horngren’s Cost Accounting

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

Instant Answer

Solved by Expert Akash M

08/02/2023

Step 1

Total Direct Material Variance: First, we need to find the standard cost per unit for materials and the actual cost per unit for materials. Standard cost per unit for materials = 4 sheets * $110 per sheet = $440 Standard cost for 600 units = 600 units * $440 per Show more…

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Basil Tooling uses a standard cost system to account for the costs of its one product. Standards are 4 sheets of 1/2-inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Basil Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for 8,770 hours worked. Calculate the: 1. Total Direct Material Variance 2. Total Direct Labor Variance