Question

MAKE A TABLE OUT OF THE FOLLOWING INFORMATION:

Producer Company's standard and actual cost per unit for the most recent period, during which 30,000 units were actually produced, are given below:
Raw Materials:
Standard useage and price - 2 feet per unit at $8.45 per foot
Actual usage - 64,000 feet
Purchased - 64,000 feet at $8.55 per foot
Direct Labor:
Standard hours and rate - 1.4 hours per unit at $16.00 per hours
Actual total direct labor - $687,300
Actual hours used - 43,5000 hours
Variable Overhead:
Standard application rate - $2.50 per direct labor hour
Actual variable overhead - $108,000
Fixed Overhead:
Budgeted - $210,000
Actual - $211,800
Standard application rate - $6.00 per direct labor hour
From the information:
A. What is the total standard cost per unit?
B. What is the total actual cost per unit?

Answer 1

The total standard cost per unit is $408.30. The total actual cost per unit is $1,554.10.

Step-by-step explanation:

The total standard cost per unit can be calculated by adding up the standard costs of raw materials, direct labor, variable overhead, and fixed overhead. For raw materials, the standard usage is 2 feet per unit at a price of $8.45 per foot. So the standard cost for raw materials per unit is $16.90. For direct labor, the standard hours per unit is 1.4 hours at a rate of $16.00 per hour. So the standard cost for direct labor per unit is $22.40. For variable overhead, the standard application rate is $2.50 per direct labor hour, which means the standard cost per unit is $2.50 multiplied by the actual hours used, which is 43,500 hours, resulting in a total of $108,750. And for fixed overhead, the standard application rate is $6.00 per direct labor hour, which means the standard cost per unit is $6.00 multiplied by the actual hours used, which is 43,500 hours, resulting in a total of $261,000. Adding up all these standard costs gives us the total standard cost per unit of $408.30.

The total actual cost per unit can be calculated by adding up the actual costs of raw materials, direct labor, variable overhead, and fixed overhead. For raw materials, the actual usage is 64,000 feet, which is $8.55 per foot, resulting in a total of $547,200. For direct labor, the actual total direct labor cost is $687,300. For variable overhead, the actual variable overhead cost is $108,000. And for fixed overhead, the actual fixed overhead cost is $211,800. Adding up all these actual costs gives us the total actual cost per unit of $1,554.10.