1.)Marcus Company uses both standards and budgets. For the year, estimated produ
ID: 2428192 • Letter: 1
Question
1.)Marcus Company uses both standards and budgets. For the year, estimated production of Product X is 495,400 units. Total estimated cost for materials and labor are $1,015,570 and $1,857,750. Compute the estimates for (a) a standard cost and (b) a budgeted cost.Materials Labor
A.)Standard Cost $ $
B.)Bugeted Cost $ $
2.)Nien Company accumulates the following data concerning raw materials in making one gallon of finished product: (1) Price-net purchase price $2.50, freight-in $0.40 and receiving and handling $0.40. (2) Quantity-required materials 2.6 pounds, allowance for waste and spoilage 0.4 pounds. Compute the following.
A.)Standard direct materials price per gallon.? $
B.)Standard direct materials quantity per gallon.? Pounds
C.)Total standard materials cost per gallon. ? $
3.)Labor data for making one gallon of finished product in Nien Company are as follows: (1) Price-hourly wage rate $13.80, payroll taxes $0.80, and fringe benefits $1.50. (2) Quantity-actual production time 1.1 hours, rest periods and clean up 0.30 hours, and setup and downtime 0.40 hours. Compute the following.
A.)Standard direct labor rate per hour. ? $
B.)Standard direct labor hours per gallon. ? Hours
C.)Standard labor cost per gallon. ? $
Explanation / Answer
1 Estimated production of product X 495400 units Estimated cost of materials $1,015,570 Estimated cost of labor $1,857,750 Total cost $2,873,320 Standard cost of material per unit $2.05 Standard cost of labor per unit $3.75 Total cost per unit $5.80 2 Standard direct materials price per gallon Materials purchase price $2.50 Freight-in $0.40 Handling charges $0.40 Standard direct materials price per gallon $3.30 b.Standard direct materials quantity per gallon Quantity required materials 2.6 pounds allowances for waste and spoilage $0.40 standard direct materials quanity per gallon 2.2 pounds c. total standard materials cost pergallon Standard quantity*standard price(2.2*3.30) $7.26 3 standard direct labor rate per hour price hourly wage rate $13.80 payroll taxes $0.80 Fringe benefits $1.50 standard direct labor rate per hour $16.10 b.standard direct labor hours per gallon Actual production time 1.1 hour Rest period and clean up .30 hour setup and downtime .40 hours 180 minutes or 3 hrs c. standard labor cost per gallon standard direct labor hour*standard direct labor rate 3hrs*16.10 $48.30
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