Cost Control Essay Example | Topics and Well Written Essays - 1250 words

Cost Control - Essay Example For the stamping dept. of a manufacturing firm, the standard cost for direct labor is $12 per hour, and the production standard calls for 1,000 stamping per hour. During June, 168 hours were required for actual production of 148,000 stampings. Actual direct labor cost for the stamping department for June was $2,184. An alternative to the preceding monthly report which could improve control over the stamping department’s direct labor is to increase the production rate in the previous month to in 1 hr = 1200 stampings. _____________________________________________________________________ Coastal Industries has established direct labor performance standards for its maintenance and repair shop. However, some of the labor records were destroyed during a recent fire. The actual hours worked during March were 4,000, and the total direct labor budget variance was $2,200 unfavorable. The standard labor rate was $18 per hour, but recent registrations allowed the firm to hire lower-paid replacement workers for some jobs, and this produced a favorable rate variance of $3,200 fro March. Fiber works Company is a manufacturer of fiberglass toy boats. The company has recently implemented a standard cost system and has designed the system to isolate variances as soon as possible. During the month of august, the following results were reported for the production of 50,000 toy