$ 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.
Instructions a. Compute Stefani ' s total standard cost per unit.
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.
Instructions a. Compute the total labor variance. b. Compute the labor price and quantity variances.
c. Repeat( b), assuming the standard is 4.1 hours of direct labor at $ 12.25 per hour.
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.