Mansfield Company Began Business Early in January Using a Standard $\$ 10.00$

Essay

Mansfield Company began business early in January using a standard costing for its single product.With standard capacity set at 10,000 standard productive hours per month,the following standard cost sheet was set up for one unit of product:
Direct material-5 pieces@$2.00             $\$ 10.00$
Direct labor (variable)-1 sph@$3.00             300

Manufacturing overhead:
Fixed-1 sph@$3.00          $\$ 3.00$
Variable-1 spha @$2.00     $2.00$                     5.00
Fixed costs are incurred evenly throughout the year.The following unfavorable variances from standard costs were recorded during the first month of operations: