Standard costing task

Mar 9, 2012
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Can somebody help with this task, I would really appreciate if someone could help, even some of the questions:

Company manufactures two staplers, small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows:
Small Regular
Direct materials(oz) 6 10
Direct labor 0.1 0.15
The standard price paid per pound of direct materials is $1.60. The standard rate for labor is $8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows:
Budgeted fixed overhead $360000
Budgeted variable overhead 480000
The company expects to work 12000 direct labor hours during the year.Standard overhead rates are computed using this activity level. For small stapler produced, the company produces two regular staples.
Actual operating data for the year are as follows:
a)Units produced: small staplers-35000, regular- 70000
b)Direct materials purchased and used: 56000 pounds at $1.55-13000 for the small stapler and 43000 for the regular stapler. There were no beginning or ending direct materials inventories.
c)Direct labor: 14800hours-3600 hours for the small stapler and 11200 hours for the regular stapler. Total cost of direct labor: $114700
d) Variable overhead $607500
c) Fixed overhead $350000
1. Prepare a standard cost sheet showing the unit cost for each product.
2. Compute the direct materials price and usage variances for each product.
3. Compute the direct labor rate and efficiency variances for each product.
4. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both product. Can you compute the total direct materials and direct labor usage variances. If yes, then compute.

Thank You!


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