Exam 17: Standard Costing and Variance Analysis 1

Figure 17-1 Max Company has developed the following standards for one of its products: Direct materials 15 pounds *£16 per pound Direct labour 4 hours*£24 per hour Variable overhead 4 hours * £14 per hour The following activities occurred during the month of October: Materials purchased 10,000 pounds costing £170,000 Materials used 7,200 pounds Units produced 500 units Direct labour 2,300 hours at £23.60 per hour Actual variable overhead £30,000 The company records materials price variances at the time of purchase. -Refer to Figure 17-1. Max's variable standard cost per unit would be

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