Kansas Company uses a standard cost accounting system. In 2014, the company prod
ID: 2422923 • Letter: K
Question
Kansas Company uses a standard cost accounting system. In 2014, the company produced 27,800 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 50,170 direct labor hours. During the year, 132,000 pounds of raw materials were purchased at $0.93 per pound. All materials purchased were used during the year. If the materials price variance was $3,960 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ Link to Text Link to Text If the materials quantity variance was $3,955 unfavorable, what was the standard materials quantity per unit? (Round answer to 1 decimal places, e.g. 1.5.) Standard materials quantity per unit Link to Text Link to Text What were the standard hours allowed for the units produced? Standard hours allowed are Link to Text Link to Text If the labor quantity variance was $5,720 unfavorable, what were the actual direct labor hours worked? Actual hours worked Link to Text Link to Text If the labor price variance was $7,636 favorable, what was the actual rate per hour? (Round answer to 2 decimal places, e.g. 2.75.) Actual rate per hour $ Link to Text Link to Text If total budgeted manufacturing overhead was $366,241 at normal capacity, what was the predetermined overhead rate? (Round answer to 2 decimal places, e.g. 2.75.) Predetermined overhead rate $ Link to Text Link to Text What was the standard cost per unit of product? (Round answer to 2 decimal places, e.g. 2.75.) Standard cost per unit $ Link to Text Link to Text How much overhead was applied to production during the year? Overhead applied $ Link to Text Link to Text Using one or more answers above, what were the total costs assigned to work in process? Total costs assigned $
Explanation / Answer
Kansas Company Rate/lb Qty lb Actual Purchase 0.93 132,000.00 Materials qty variance= 3955 unfav So , Actual Price*(Std qty -Actual Qty)= (3,955.00) 0.93*Std qty-0.93*132000=-3955 Std qty =127741.31 Units produced 27,800.00 So Standard material qty per lb= 4.60 Material Price variance = 3,960.00 fav So Std qty *( Std Price-Actual price)= 3,960.00 127741.31*(Std price-0.93)=3960 Std Price=0.96 So Std price per lb=0.96 Hr/unit Rate Labor standard 1.60 13.00 Std labor hrs for 27800 units 44,480.00 Labor qty variance= Acutal rate*( Std labor hr required-Actual Labor hrs)=-5720 13*(1*6*27800-Actual Labor Hr)=-5720 Actual labor hrs=44920 So actual labor hrs worked =44920 hrs Labor price variance=Std Labor Hrs*(Std Labor Rate-Actual Labor rate)=-7636 44480*(13-Actual labor rate)=-7636 Actual Labor rate =13.17 per Hr Budgeted Manufacturing OH 366,241.00 DLH in Normal capacity 50,170.00 predetermined Manufacturing OH per DLH= 7.30 Actual Direct labor Hrs= 44,920.00 Actual Ovehead applied 327,916.00 Std cost per unit Qty Rate Cost Direct Material 4.60 0.96 4.42 Direct Labor 1.60 13.00 20.80 Manufacturing Overhead 1.60 7.30 11.68 Standard cost per unit 36.90 Total Cost Assigned to WIP Qty Rate Cost Direct Material 132,000.00 0.93 122,760.00 Direct Labor 44,920.00 13.17 591,596.40 Manufacturing Overhead 44,920.00 7.30 327,916.00 Total cost assigned to WIP 1,042,272.40
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.