Standard Price/rate

Standard Price/rate

Variable manufacturing overhead  – Standard Price/rate

During February, 850 direct labor hours were worked and 600 units of the product were manufactured. Each unit of product required one unit of raw material. The actual cost per unit manufactured during February was $0.30 higher than the standard cost.

For the month of February, the standard cost of production for direct labor was $14,000 and for variable manufacturing overhead was $4,300. Actual variable manufacturing overhead was $4,340. Actual costs incurred for materials used were $24,000. The material quantity usage variance was an unfavorable $700. Fixed overhead per direct labor is $3.5 (assuming normal capacity of 900 labor hours). Actual fixed overhead incurred was $3,500 (use labor hours as cost driver for overhead costs).

There was no stock of materials in the beginning of the February however, at the end of the month there were 100 units of materials.Based on the above information, answer questions 1 through 10…


Calculate the total standard cost of materials used for actual production during February

“$41,300 ”

“$18,300 ”

“$21,000 ”

“$26,700 ”


Calculate the Standard quantity of materials per unit of product





Q3).Calculate the Direct materials price variance for February


“$2,700 ”


“$3,845 ”


Calculate the Standard direct labor rate per hour






Calculate the Direct labor rate variance

“$6,340 ”

“$1,965 ”

“$4,590 ”

“$2,840 ”


Calculate the Direct labor efficiency variance






Calculate the Variable overhead spending variance






Calculate the Variable overhead efficiency variance






Calculate the Total budget controllable variance






Calculate the Total overhead variance