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    Calculations of Actual Costs Incurred

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    The 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 . . . . . . . . . . . . . . . . . . . . . . . . $ 85,000
    Price variance . . . . . . . . . . . . . . . . . . . . . . . $5,000
    Quantity variance . . . . . . . . . . . . . . . . . . . . . $3,000
    Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
    Rate variance . . . . . . . . . . . . . . . . . . . . . . . . 2,700
    Efficiency variance . . . . . . . . . . . . . . . . . . . . 6,200
    Manufacturing overhead . . . . . . . . . . . . . . . . . 300,000
    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.

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    https://brainmass.com/business/accounting/calculations-actual-costs-incurred-628055

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    Solution Summary

    The solution is provided in excel format showing step-by-step calculations of actual costs incurred for Direct Materials, Direct Labor, and Manufacturing Overhead given standard costs and variances.

    $2.19

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