Solved by verified expert :Chapter Eleven Assignment
Part One (10 points)
Gears produces lawn mower gears. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system:

Actual Data

Budgeted and
Standard Data


12,400 units

Budgeted units

12,500 units

Materials purchased

4,650 lbs. for a total
cost of $32,550

Budgeted materials

0.40 lb. @ $7.10 per lb.

Materials used

4,700 lbs.

Budgeted labor

36 minutes @ $11.00 per

Labor worked

7,460 hrs. costing $79,822

Budgeted variable overhead


Actual overhead

Fixed: $84,800
Variable $36,100

Budgeted fixed overhead


How much is the standard cost of each
lawn mower gear?

Part Two (10 points)
Provide BOTH the direct
material quantity and price variances for Standard Gears (info in table above).

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