Staples - Johnstown 590 Galleria Dr, Johnstown PA 15904 Phone Number: (814) 262-9096
The distribution of manufacturing overhead costs to individual product unit, or production batches generally, requires a base or a cost driver, to which reference a rate, known as material burden rate applies. Material burden is the amount of manufacturing overhead costs that a unit of the base carries.
A company manufacturers a plastic tray. Its standard cost for the direct materials included in one tray is 2 pounds of material at the standard cost of $3 per pound.The company produced 100 trays and used 210 pounds of material. The material's actual cost was $3.10 per pound. The direct materials usage or quantity variance is.he standard cost of the materials will be $600 (200 std lbs X $3 std cost). The actual pounds used was $210 pounds X $3 std cost = $630. The $30 difference (10 additional lbs. X $3 std cost) is an unfavorable usage or quantity variance.