Blue Dingo uses a standard costing system. The company\'s standard costs and var
ID: 2597933 • Letter: B
Question
Blue Dingo uses a standard costing system. The company's standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows Variances Standard Cost $ 97,000 Unfavorable Favorable Direct materials $ 4,700 Price variance Quantity variance $3,800 Direct labor 190,000 Rate variance Efficiency variance 2,700 6,200 Manufacturing overhead 252,000 Spending variance Volume variance 3,800 5,ee0 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead Actual Costs Incurred Direct materials Direct labor Manufacturing overheadExplanation / Answer
Answer:- Actual costs incurred:-
Direct material = $98700
Direct labor = $193500
Manufacturing overhead=$253200
Explanation:-
Material cost variance = Standard cost – Actual cost
$1700 Unfavourable = $97000 – Actual cost
Actual cost = $97000+$1700 =$98700
Labor cost variance = Standard cost – Actual cost
$3500 Unfavourable = $190000 – Actual cost
Actual cost = $190000+$3500 =$193500
Manufacturing overhead cost variance = Standard cost – Actual cost
$1200 Unfavourable = $252000 – Actual cost
Actual cost = $252000+$1200 =$253200
Material cost variance = Material price variance+ Material Quantity variance
=$4700 Unfavourable + $3000 Favourable
=$1700 Unfavourable
Direct labor cost variance = Labor rate variance+ Labor efficiency variance
=$2700 Favourable + $6200 Unfavourable
=$3500 Unfavourable
Manufacturing overhead cost variance = Spending variance+ Volume variance
=$3800 Favourable + $5000 Unfavourable
=$1200 Unfavourable