Final Answer:
(1) Standard Cost Card: The standard cost per unit is $10 for direct materials, $5 for direct labor, and $3 for variable overhead, totaling $18 per unit.
(2) Total Budgeted Cost for June Production: The total budgeted cost for June production, considering 1,000 units, amounts to $18,000.
(3) Total Actual Cost for June Production: The total actual cost for June production, accounting for 1,100 units, sums up to $21,000.
(4) Total Cost Variance for June: The total cost variance for June is $3,000 unfavorable.
Explanation:
In the standard cost card, the cost per unit for direct materials, labor, and variable overhead are calculated. Multiplying the standard cost per unit of each component ($10 for materials, $5 for labor, $3 for variable overhead) gives us the standard cost per unit, which amounts to $18 per unit.
For computing the total budgeted cost for June production, considering the production of 1,000 units, we multiply the standard cost per unit ($18) by the number of units (1,000), resulting in a total budgeted cost of $18,000.
Moving to the total actual cost for June production, considering 1,100 units produced, the actual cost incurred is computed by multiplying the number of units (1,100) by the standard cost per unit ($18), giving us a total actual cost of $21,000.
Now, to determine the total cost variance for June, we compare the total actual cost ($21,000) with the total budgeted cost ($18,000). The variance is calculated as actual cost minus budgeted cost ($21,000 - $18,000), resulting in a total cost variance of $3,000 unfavorable.
This indicates that the actual cost exceeded the budgeted cost by $3,000 for the June production. Variance analysis helps in identifying discrepancies between planned and actual costs, enabling companies to take corrective actions if needed to manage costs more effectively.