The budget for the month of May was for 13,200 units at a direct materials cost of $24 per unit. Direct labor was budgeted at 33 minutes per unit for a total of $118,800. Actual output for the month was 9,400 units with $150,000 in direct materials and $86,775 in direct labor expense. The direct labor standard of 33 minutes was obtained throughout the month. Variance analysis of the performance for the month of May would show a(n): (CMA adapted)
= $150,000 / 9,400
= $15.95
= (Standard Price - Actual Price) x Actual Units
= (24 - 15.95) x 9,400
= $75670
= (Standard Units - Actual Units) x Standard Price
= (13,200 - 9,400) x 24
= $91,200
= Labor Cost Variance - Labor Efficiency Variance
= (1,18,800 - 86,775) - 0
= $32,025
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