Beakins Corporation produces a single product. The standard cost card for the product follows: ...
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Accounting
Beakins Corporation produces a single product. The standard cost card for the product follows:
Direct materials (4 yards $5 per yard)
$20
Direct labor (1.5 hours $10 per hour)
$15
Variable manufacturing overhead (1.5 hours $4 per hour)
$6
During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below:
Direct Materials purchased (6,000 yards)
$28,000
Direct Materials used in production
5,000
Yards
Direct labor cost incurred (2,100 hours)
$17,850
Variable manufacturing overhead cost incurred
$10,080
The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours.
The materials price variance for the period is:
$1,250 F
$1,500 F
$1,250 U
$1,500 U
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