Exercise 23-9 (Part Level Submission) You have been given the following informat

Question

Exercise 23-9 (Part Level Submission) You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations Direct materials (9 pounds at $4 per pound) Direct labor (0.80 hours at $7) Variable overhead (0.80 hours at $3 per hour) Fixed overhead (0.80 hours at $8 per hour) Standard Cost Card $36.00 5.60 2.40 6.40 $50.40 The following is a variance report for the most recent period of operations Variances Costs Total Standard Cost Price $407,000$5,770 F 4,200 U Quantity $9,200 U 6,600 U Direct materials Direct labor 63,314 ? (a) Your answer is correct How many units were produced during the period? (Round answer to 0 decimal places, e.g. 125.) Number of 11306 units

Explanation / Answer

(a)Units were produced during the year

Number of units produced = Total standard cost ÷ Standard cost per unit

Number of units = $4,07,000 / $36

= 11,306 Units

(b)Pounds of raw material were purchased and used during the year

AQ = [(SQ X SP) + Quantity variance] / SP

AQ = ($4,07,000 + $9,200) / $4

       = $4,16,200 / $4

       = 1,04,050 Units

Raw Material = 1,04,050 Units

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