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 $18 per pound and 0.25 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 130 bats is $4,940.00. Compute the total cost variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Actual cost Budgeted standard cost Total cost variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $18 per pound and 0.25 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 130 bats is $4,940.00. Compute the total cost variance and identify it as favorable or
unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
Actual cost
Budgeted standard cost
Total cost variance
Transcribed Image Text: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 $18 per pound and 0.25 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 130 bats is $4,940.00. Compute the total cost variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Actual cost Budgeted standard cost Total cost variance
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