| 10lb carton = 1 unit | | | total units sold = total $ sold / price per unit |
| $25 / unit | | | | = $500,000 / $25 |
| budget $500,000 in sales @ $25 each | | | | 20000 | cartons |
| Budget |
| total sold $ | $ 500,000 | | standard cost per unit fruit = direct materials $ fruit / total units sold |
| price per unit (10 lbs) | $ 25 | | | = $200,000 / 20,000 |
| total sold units | 20,000 | | | $ 10 | per cartons |
| Standard (Given) | | | standard cost per unit packaging = direct materials $ packaging / total units sold |
| direct materials | | | | = $10,000 / 20,000 |
| 10lbs fruit (carton) @ $25/carton | $ 200,000 | | | $ 0.50 | per carton |
| packaging (1lb/carton) | $ 10,000 |
| direct labor | | | standard cost per unit labor = direct materials $ labor / total units sold |
| labor (.5 hours/carton) | $ 90,000 | | | = $90,000 / 20,000 |
| total cost | $ 300,000 | | | $ 4.50 | per carton |
| Actual (Given) | | | standard cost per carton = cost fruit + cost packaging + cost labor |
| direct materials | | | | = $10+ $0.50 + $4.50 |
| 10lbs fruit (carton) | $ 244,200 | | | $ 15 | per carton |
| packaging (.55lb/carton) | $ 11,000 |
| direct labor |
| labor (.75 hours/carton) | $ 150,000 | | actual cost per unit fruit = actual direct materials $ fruit / total units sold |
| total cost | $ 405,200 | | | = $244,200 / 20,000 |
| unfavorable variance | $ 105,200 | | | $ 12.21 | per carton |
| Calculated Variables | | | actual cost per unit packaging = actual direct materials $ packaging / total units sold |
| standard cost per unit | $15.00 / carton | | | = $11,000 / 20,000 |
| actual cost per unit | $20.26 / carton | | | $ 0.55 | per carton |
| direct materials price variance | $45,200 unfavorable |
| direct materials usage variance | $0 | | actual cost per unit labor = actual direct labor $ / total units sold |
| direct labor rate variance | $15,000 unfavorable | | | = $150,000 / 20,000 |
| direct labor efficiency variance | $45,000 unfavorable | | | $ 7.50 | per carton |
| | | | actual cost per carton = actual cost fruit + actual cost packaging + actual cost labor |
| | | | | = $12.21 + $.55 + $ 7.50 |
| | | | | $ 20.26 | per carton |
| | | | direct materials price variance = actual cost - standard cost |
| | | | | actual cost = ($12.21 + $.55) * 20,000 |
| | | | | $ 255,200 | actual cost |
| | | | | standard cost = ($10 + $.50) * 20,000 |
| | | | | $ 210,000 | standard cost |
| | | | | = $255,200 - $210,000 |
| | | | | $ 45,200 | unfavorable variance |
| | | | direct materials usage variance = (actual useage - standard usage) * standard cost |
| | | | | = (20,000 - 20,000) * $.50 |
| | | | | $ - 0 | no variance |
| | | | direct labor rate variance = (actual rate x actual hours) - (standard rate x actual hours) |
| | | | | actual labor hours = (20,000 x .75) |
| | | | | 15,000 | actual labor hours |
| | | | | actual rate = $150,000 / 15,000 |
| | | | | $ 10 | actual labor rate |
| | | | | $ 150,000 | actual rate |
| | | | | standard labor hours = 20,000 x .5 |
| | | | | 10,000 | standard labor hours |
| | | | | standard rate = $90,000 / 10,000 |
| | | | | $ 9 | standard labor rate |
| | | | | $ 135,000 | standard rate |
| | | | | = actual rate - standard rate |
| | | | | = $150,000 - $135,000 |
| | | | | $ 15,000 | unfavorable variance |
| | | | direct labor efficiency variance = (actual hours - standard hours) x standard rate |
| | | | | = (15,000 - 10,000) x 9 |
| | | | | $ 45,000 | unfavorable variance |
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Unit5WrittenAssignmentWorkshet.xlsx
