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    Standard Costing

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    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

    Required:

    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).

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    Solution Summary

    Excel file contains s computation and analysis of cost variances.

    $2.49

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