XO-20 is an oil-based product used to remove rust on bolts and nuts that are...
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XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standard costs. The standards per 0.5-liter can of solution call for 0.61 liters of material and 4 hours of labor. (0.61 liters of material are needed due to evaporation in the production process.) The standard cost per liter of material is $2.4. The standard cost per hour for labor is $12.10. Overhead is applied at the rate of $15.42 per can. Expected production is 7, 600 cans with fixed overhead per year of $36, 024 and variable overhead of $10.68 per unit (a 0.5-liter can). During 2015, 7, 820 cans were produced; 13,000 liters of material were purchased at a cost of $55, 900; 10, 050 liters of material were used in production. The cost of direct labor incurred in 2015 was $347, 472, based on an average actual wage rate of $10.16 per hour. Actual overhead for 2015 was $122,000. Determine the standard cost per unit. Calculate material, labor, and overhead variances
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