Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing facilities in your state. Sarah began the business this year, and while she has a great deal of experience in manufacturing popular and comfortable shoes, she needs some help in evaluating her results for the year, and asks for your help. Sarah has leamed a lot from you over the past two months, and has compilled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Regort for September. The company produced 3,500 pairs of shoes that required 12,250 units of material purchased at $8.20 per unit and 9,450 hours of labor at an hourly rate of $8.90 hour during the month. Actual overhead during September was $27,300. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance. Use the data in the table below to prepare the Budget Performance Report for Sole Purpose Shoe Company for September.
Manufacturing Costs Standard Price Standard Quantity Standard Cost
Per Unit Per Unit
Direct materials $8.40 per unit 3.6 units per pair $30.24
Direct labor $8.50 per hour 2.8 hours per pair 23 80
Factory overhead 2.60 per hour 8 hours per pair 7.28
Total standard cost per unit $61.32