Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of direct labor-hours. The following data are taken from the company’s budget for the current year:

Denominator activity (direct labor-hours) 12,900

Variable manufacturing overhead cost $56,760

Fixed manufacturing overhead cost $141,900

The standard cost card for the company’s only product is given below:

Direct materials, 3 yards at $2.60 per yard $7.80

Direct labor, 2 hour at $10 per hour 20.00

Manufacturing overhead, 154.00% of direct labor cost 30.80

Standard cost per unit


During the year, the company produced 5,000 units of product and incurred the following costs:

Materials purchased, 32,000 yards at $2.50 per yard $80,000

Materials used in production (in yards) 26,000

Direct labor cost incurred, 12,000 hours at $8.1 per hour $97,200

Variable manufacturing overhead cost incurred $34,300

Fixed manufacturing overhead cost incurred $33,700

Requirement 1:

Redo the standard cost card in a clearer, more usable format by detailing the variable and fixed overhead cost elements. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Direct materials $

Direct labor

Variable manufacturing overhead

Fixed manufacturing overhead cost

Standard cost per unit