The Geurtz Company uses standard costing. The company makes and sells a single p

Question

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August: Actual cost of direct material purchased and used: $65,560 Material price variance: $5,960 unfavorable Total materials variance: $22,360 unfavorable Standard cost per pound of material: $4 Standard cost per direct labor-hour: $5 Actual direct labor-hours: 6,500 hours Labor efficiency variance: $3,500 favorable Standard number of direct labor-hours per unit of Roff: 2 hours Total labor variance: $400 unfavorable The total number of units of Roff produced during August was: A) 10,800 B) 14,400 C) 3,600 D) 6,500

Explanation / Answer

single product called a Roff. The following data are for the month of August: • Actual cost of direct material purchased and used: $65,560 • Material price variance: $5,960 unfavorable • Total materials variance: $22,360 unfavorable • Standard cost per pound of material: $4 • Standard cost per direct labor-hour: $5 • Actual direct labor-hours: 6,500 hours • Labor efficiency variance: $3,500 favorable • Standard number of direct labor-hours per unit of Roff: 2 hours • Total labor variance: $400 unfavorable The total number of units of Roff produced during August was: A) 10,800

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