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.
During the month, the company purchased 10,840 kilos of the direct material at a cost of $76,720. The actual direct labor cost was $38,237 and the actual variable overhead cost was $11,938. The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.