# Calculations of Actual Costs Incurred

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.

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.