For November Total Standard Cost Standard Lot Number Boxes in Lot per Box Cost 22 1000 $ 106.50 $ 106.50 23 1700 $ 106.50 $ 181.05 24 1200 $ 90.48 $ 108.58 Standard cost of production $ 396.126
Direct Labor Standard Cost $ 44.10
Add: Manufacturing Overhead $ 36.00 Production Percentage 80% Add: Direct Material $ 26.40 Lot 24 Standard cost per box $ 90.48
EUROPEAN STYLES, INC.
Direct-Material Purchase Price Variance For November Actual cost of materials purchased $ 106,400 Standard cost of materials purchased 104,500 Direct-material purchase price variance $ 1,900
EUROPEAN STYLES, INC.
Direct-material quantity variance For November Direct material Quantity Variances Lot 22 Lot 23 Lot 24 Boxes in Lot 1,000 1,700 1,200 Standard yards per box $ 24 $ 24 $ 24 Total Standards Quantity 24,000 40,800 28,800 Actual Yards 24,100 40,440 28,825 Total Variance in Yards 100 - 360 25 Standard Price $ 1.10 $ 1.10 $ 1.10 Direct Material Quantity Variances $ 110 -$ 396 $ 27.5 Unfavorable favorable Unfavorable
EUROPEAN STYLES, INC.
Direct-labor efficiency variance For November Direct-labor efficiency variance Lot 22 Lot 23 Lot 24 Standard Hours : Boxes in Lot 1,000 1,700 1,200 Standard hours per box $ 3 $ 3 $ 3 Total 3,000 5,100 3,600 Percentage of completion 100% 100% 80% Total Standard Hours 3,000 5,100 2,880 Actual hours worked 2980 5130 2890 Variance in Hours - 20 30 10 Standard rate $ 14.70 $ 14.70 $ 14.70 Direct Labor Efficiency Variances -$ 294 $ 441 $ 147 favorable Unfavorable Unfavorable
EUROPEAN STYLES, INC.
Direct-labor rate variance For November Direct-labor rate variance : Lot 22 Lot 23 Lot 24 Actual Hours Worked 2,980 5,130 2,890 Rate paid in excess standard $ 0.30 $ 0.30 $ 0.30 Variance $ 894 $ 1,539 $ 867 Unfavorable Unfavorable Unfavorable
Production employees $15.00
Standard Direct labor per hour 14.70 Rate paid in excess standard $ 0.30
Raw Material $ 104,500
Direct material price variance $ 1,900 Accounts Payable $ 106,400 * Raw Material : 95.000 x $1.10 = $ 104,500
Direct labor rate variance $ 3,300
Wages payable $ 3,300
Work in Process $ 102,960
Direct Material quantity variance $ 259 Raw Materia $ 102,702 * Work in Process : 93.600 x $1.10 = $102.960
Work in process $ 161,406
Direct labor rate variance $ 294 Direct Labor Efficiency Variances $ 3,300 Wages Payable $ 165,000