required information
use the following information for the quick study below. (algo)
the following information applies to the questions displayed below.

batco makes baseball bats. each bat requires 1.00 pounds of wood at $22 per pound and 0.35 direct labor hour at $20 per hour. overhead is assigned at the rate of $40 per direct labor hour.

qs 21-6 (algo) total cost variances lo p2

assume the actual cost to manufacture 140 bats is $7,000. compute the total cost variance and identify it as favorable or unfavorable.
note: indicate the effect of the variance by selecting favorable, unfavorable, or no variance.

\begin{tabular}{|l|l|l|}
\hline
\text{item} & \text{amount} & \text{variance} \\
\hline
\text{actual cost} & & \\
\hline
\text{budgeted standard cost} & & \\
\hline
\text{total cost variance} & & \\
\hline
\end{tabular}

Question

required information
use the following information for the quick study below. (algo)
the following information applies to the questions displayed below.

batco makes baseball bats. each bat requires 1.00 pounds of wood at $22 per pound and 0.35 direct labor hour at $20 per hour. overhead is assigned at the rate of $40 per direct labor hour.

qs 21-6 (algo) total cost variances lo p2

assume the actual cost to manufacture 140 bats is $7,000. compute the total cost variance and identify it as favorable or unfavorable.
note: indicate the effect of the variance by selecting favorable, unfavorable, or no variance.

\begin{tabular}{|l|l|l|}
\hline
\text{item} & \text{amount} & \text{variance} \\
\hline
\text{actual cost} & & \\
\hline
\text{budgeted standard cost} & & \\
\hline
\text{total cost variance} & & \\
\hline
\end{tabular}

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [], "new_concepts": [ "Total Cost Variance", "Standard Cost Per Unit" ], "current_concepts": [ "Standard Cost Per Unit", "Total Cost Variance" ] } ## Calculate standard cost per bat $$ \begin{aligned} \text{Direct Materials} &= 1.00\text{ lb} \times \$22/\text{lb} = \$22.00 \ \text{Direct Labor} &= 0.35\text{ hr} \times \$20/\text{hr} = \$7.00 \ \text{Overhead} &= 0.35\text{ hr} \times \$40/\text{hr} = \$14.00 \ \text{Standard Cost per Bat} &= \$22.00 + \$7.00 + \$14.00 = \$43.00 \end{aligned} $$ ## Calculate budgeted standard cost for 140 bats $$ \begin{aligned} \text{Budgeted Standard Cost} &= 140\text{ bats} \times \$43.00/\text{bat} = \$6,020 \end{aligned} $$ ## Calculate total cost variance $$ \begin{aligned} \text{Actual Cost} &= \$7,000 \ \text{Total Cost Variance} &= \text{Actual Cost} - \text{Budgeted Standard Cost} \ &= \$7,000 - \$6,020 = \$980 \ \text{Since Actual Cost} &> \text{Budgeted Standard Cost, the variance is Unfavorable.} \end{aligned} $$ | Item | Amount | Variance | | :--- | :--- | :--- | | Actual cost | \$7,000 | | | Budgeted standard cost | \$6,020 | | | Total cost variance | \$980 | Unfavorable | { "subject": "Business", "question_type": "Fill-in-the-blank", "knowledge_point": [ "Business", "Accounting", "Standard Costing and Variance Analysis" ] }

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

Calculate standard cost per bat

Calculate budgeted standard cost for 140 bats

Calculate total cost variance

Answer:

Item	Amount	Variance
Budgeted standard cost	\$6,020
Total cost variance	\$980	Unfavorable