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Direct Materials: 24kg @ $3.00 $ 72.00 Direct Labour: 6 hours @ $6.50 39.00 Factory overhead: 6 hours @ $0.75 4.50 Total unit standard cost $ 115.50 The factory overhead was based on the following flexible budget, in which 90% is normal capacity. 80% 90% 100% Hours (direct labour) 40,000 45,000 50,000 Variable expenses $20,000 $22,500 $25,000 Actual data for November: Fixed Expenses 11,250 11,250 11,250 Total Factory Overheads 31,250 33,750 36,250 Planned production, 7,500 units Material put into production 192410kg @ $ 3.04 (average cost) Direct Labour 46,830 hours @ $6.60 average labour cost Actual FOH $ 36,340 Other data: Beginning inventory, work in process, 80 units, all material, 50% converted Ending inventory, work in process, 100 units, all material, 50% converted Started in process during November 7,850 units Required: A variance analysis of Material (Overall, Price and Usage) FOH (Overall, Spending and Capacity)
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