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AJack Partnership manufactures jackhammers. AJack Partnership is looking for guidance in the variances of its standard cost system. It would like you to assist in understanding material price, material quantity, rate, efficiency, and overhead variances.
The standard cost card information for unit of product is below.
Standard cost card per unit of product
Direct materials: 4 pounds at $9.00 per pound of steel
$36.00
Direct labor: 2.0 direct labor hours at $20.00 per hour
40.00
Variable overhead: 100% of a direct labor hour at $10.00 per hour
20.00
Fixed overhead: 100% of a direct labor hour at $20.00 per hour
Standard cost per unit
$136.00
The following information is available in the year just finished:
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