BatCo makes metal baseball bat

 

BatCo makes metal baseball bats. Each bat requires 2.00 kg of aluminum at $16 per kg and 0.35 direct labor hours at $18 per hour. Overhead is assigned at the rate of $32 per direct labor hour.

QS 23-5 Standard cost card LO C1

What amounts would appear on a standard cost card for BatCo?

 
 
  Qty per Unit     Cost per Input Std. Cost per Unit
Direct materials          
Direct labor          
Overhead          
   

QS 23-6 Cost variances LO C2

Assume the actual cost to manufacture one metal bat is $55.50. Compute the cost variance and classify it as favorable or unfavorable.

 
 
  Qty per Unit     Cost per Input Total      
Direct materials            
Direct labor          
Overhead          
         

Answer:

Solution:-

QS 23-5Standard cost card LO C1

What amountswould appear on a standard cost card for BatCo?

Qty per Unit Cost per Input Std. Cost perUnit
Direct materials 2.00 kg $16 per kg

= 2 * 16

= $32.00

Direct labor 0.35 hours $18 per hour

= 0.35 * 18

= $6.3

Overhead 0.35 hours $32 per direct labor hour

= 0.35 * 32

= $11.2

Total standard cost card for BatCo

= $32.00 + $6.3 + $11.2

= $49.50

QS 23-6 Cost variances LOC2

Assume the actual cost tomanufacture one metal bat is $55.50. Compute the cost variance andclassify it as favorable or unfavorable.

Qty per Unit Cost per Input Std. Cost perUnit
Direct materials 2.00 kg 16 per kg

= 2 * 16

= $32.00

Direct labor 0.35 hours $18 per hour

= 0.35 * 18

= $6.3

Overhead 0.35 hours $32 per direct labor hour

= 0.35 * 32

= $11.2

Total standard cost card for BatCo

= $32.00 + $6.3 + $11.2

= $49.50

  • Compared to actual cost standard cost is less . so, cost ofvariance is unfavorable .

Direct in cost = Actual cost – standard cost

where,

Actual cost = $55.50

Standard cost = $49.50

Cost of variance = $55.50 $49.50

= $6

Cost of variance = $6 ( unfavorable )


 
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