Explore BrainMass

Explore BrainMass

    Standard Costing

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Poochy Pride Corporation produces dog food. The company's standard cost and annual budget information are as follows:

    Standard Costs per Case

    Direct material (20 pounds at $2) $ 40.00
    Direct labor (5 hours at $18) 90.00
    Variable overhead (5 hours at $1.50) 7.50
    Fixed overhead (5 hours at $3) 15.00
    Total $152.50

    Annual Budget Information

    Variable overhead $150,000
    Fixed overhead $300,000
    Planned activity for year 100,000 direct labor hours

    During October, Poochy Prtide produced 1,450 cases of dog food and incurred the following actual costs:

    Actual labor cost (8,000 direct labor hours) $151,200
    Actual material cost (30,000 pounds purchased and used) 66,000
    Variable overhead 11,000
    Fixed overhead 26,000


    Prepare as complete and analysis of cost variances as is possible from the available data. Be sure to indicate whether the variance is favorable (F) or unfavorable (U).

    © BrainMass Inc. brainmass.com March 4, 2021, 8:12 pm ad1c9bdddf

    Solution Summary

    Excel file contains s computation and analysis of cost variances.