Final Frontier Company produces one product. The company budgeted to produce and

Question

Final Frontier Company produces one product. The company budgeted to produce and sell 15,000 units during the year. The standard costs to make one unit are as follows: Direct materials per uni..4 pounds Direct materials cost per pound..$3.80 Direct labor per unit... .2.8 hours irest lkator rai.. $12.00 Final Frontier Company actually produced and sold 17,000 units during the year. Additional information for the actual costs of the company is as follows: The company purchased and used 57,800 pounds of materials costing $265,880. Actual labor costs for the year were $725,900. Answer the following questions 1. What amount of direct materials cost would be included in the flexible budget for the year? 2. What is the materials quantity (efficiency) variance for Final Frontier Company for the year? If this variance is unfavorable put a "U" immediately following your number answer. If this variance is favorable, put a "F" immediately following your number answer. 3. Refer again to the information for Final Frontier Company. If the direct labor rate variance is $11,900 unfavorable, what was the actual labor rate (rate per hour) for the year?

Explanation / Answer

1 Direct materials cost = 17000*4*3.8= $258400 2 Materials quantity variance = 3.8*(57800-17000*4)= $38760 F 3 Standard hours = 17000*2.8= 47600 Actual hours = (725900-11900)/12= 59500 Actual labor rate = 725900/59500= $12.2

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.