Get a unique, high-quality and non-plagiarized paper from us today at the most affordable price
Email us :

total standard cost per unit

E11-3 Stefani Company has gathered the following information about its product.

  • Direct materials. Each unit of product contains 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 pounds. Materials cost $5 per pound, but Stefani always takes the 2% cash discount all of its suppliers offer. Freight costs average $0.25 per pound.
  • Direct labor. Each unit requires 2 hours of labor. Setup, cleanup, and downtime average 0.4 hours per unit. The average hourly pay rate of Stefani’s employees is $12. Payroll taxes and fringe benefits are an additional $3 per hour.
  • Manufacturing overhead. Overhead is applied at a rate of $7 per direct labor hour.


Compute Stefani’s total standard cost per unit.

Compute labor cost and labor quantity variance.

E11-6 Lewis Company’s standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,600 hours of labor are incurred at a cost of $12.15 per hour to produce 10,000 units of Product DD.


  1. Compute the total labor variance.
  2. Compute the labor price and quantity variances.
  3. Repeat (b), assuming the standard is 4.1 hours of direct labor at $12.25 per hour.

Compute materials and labor variances.

E11-12 Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $850,000 comprised of $250,000 of variable costs and $600,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours.

During the current year, Byrd produced 95,000 putters, worked 94,000 direct labor hours, and incurred variable overhead costs of $256,000 and fixed overhead costs of $600,000.


  1. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.
  2. Compute the applied overhead for Byrd for the year.
  3. Compute the total overhead variance.

Compute variances for materials.

P11-2A Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.

Costs and Production DataActualStandard
Raw materials unit cost$2.25$2.10
Raw materials units used10,60010,000
Direct labor payroll$120,960$120,000
Direct labor hours worked14,40015,000
Manufacturing overhead incurred$189,500
Manufacturing overhead applied$193,500
Machine hours expected to be used at normal capacity42,500
Budgeted fixed overhead for June$55,250
Variable overhead rate per machine hour$3.00
Fixed overhead rate per machine hour$1.30

Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.


  1. Compute all of the variances for (1) direct materials and (2) direct labor.

(a) LQV $4,800 F

  1. Compute the total overhead variance.
  2. Prepare an income statement for management. (Ignore income taxes.)

Compute and identify signifi cant variances.


Do you want your assignment written by the best essay experts? Order now, for an amazing discount.

How to Place an Order 

Send the assignment details such as the instructions, due date/deadline, number of pages and college level to the customer support agent online on live chat,  fill in the assignment details at place an order or send the information to our email address and a customer support agent will respond to you immediately. 

Once you place your order, we choose for you the best and competent writer for your assignment based on each writer’s competence in handling a subject. 

When the homework is completed, we have a quality assurance team that proofreads the assignment to ensure it meets the required rubric instructions from your professor.

After thorough review of your assignment, we send the paper to the client. In case you need any changes at this point, you can let us know so that we can handle it for you at no extra charge. 

Homework Help Website

Why we should write your Paper 

  1. Money Return guarantee
  2. 0% Plagiarism Rate
  3. Guaranteed Privacy
  4. Written from scratch by highly qualified writers 
  5. Communication at Any Time (24/7)
  6. Flexible Pricing and Great Discount Programs
  7. Timely Deliveries
  8. Free Amendments
Looking for a similar assignment and in urgent need for help? Place your order and have excellent work written by our team of professionals to ensure you acquire the best grades.

  We are here to assist you.


Statistics about Us

130 New Projects
235 Projects in Progress
315 Inquiries
420 Repeat clients

© 2021 Premiered Tutorials
All rights reserved. We provide online custom written papers, such as term papers, research papers, thesis papers, essays, dissertations and other custom writing services.

All papers inclusive of research material are strictly intended to be used for research and study purposes only. Premiered Tutorials does not support or condone plagiarism in any form. These custom papers should be used with proper reference.

Place an Order
error: Content is protected !!