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 Unfavorable Favorable Direct materials $ 80,000 Price variance $ 4,500 Quantity variance $ 3,000 Direct labor 184,000 Rate variance 2,700 Efficiency variance 6,200 Manufacturing overhead 271,000 Spending variance 4,000 Volume variance 5,000 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead.

Answer 1

Answer:

Actual Direct material cost = $81,500

Actual Direct labor cost = $187,500

Actual manufacturing overhead = $272,000

Explanation: kindly see attached picture for detailed explanation.

Variances ; Standard Cost Unfavorable Favorable Direct materials $ 80,000 Price variance $ 4,500 Quantity variance $ 3,000 Direct labor 184,000 Rate variance 2,700 Efficiency variance 6,200 Manufacturing overhead 271,000 Spending variance 4,000 Volume variance 5,000 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead.

Answer 2

Answer:

$81,800, $187,500, $181,000

Explanation:

Direct materials = Standard cost + Unfavorable Price variance - Favorable Quantity Variance

= $80,000 + $4,500 - $3,000

=$81,800

Direct Labor = Standard cost + Unfavorable Efficiency variance - Favorable Rate Variance  

= $184,000 + $6,200 - $2,700

= $187,500

Manufacturing overhead = Standard cost - Favorable Spending variance - Favorable Volume Variance

= $271,000 - $4,000 - $5,000

= $181,000