O ezto.mheducation.com/hm.tpx tandard Quantity Standard Price Standard Direct ma
ID: 2550477 • Letter: O
Question
O ezto.mheducation.com/hm.tpx tandard Quantity Standard Price Standard Direct materials Direct labor Variable manufacturing overhead or Hours 3.5 pounds 0.4 hours or Rate $2.50 per pound Cost $ 8.75 $6.50 per hour $2.00 per hour 0.2 hours 2.60 0.40 Total standard variable cost $ 11.75 Based on machine-hours During October the plant produced 8,000 ingots and incurred the following costs a Purchased 33,000 pounds of materials at a cost of $2 95 per pound. There were no raw materials in inventory at the beginning of the month b Used 27 800 pounds of materials in production. Used 27, 800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored) c Worked 3 800 direct labor-hours at a cost of S6.20 per hour d Incurred a total variable work i hours was recorded manufacturing overhead cost of $4 560 for the month A total of 1,900 machine- It is the company s pollcy to c lose all yariances to cost of goods sold on a monthly basis ariances when matería e purchased Compute the prExplanation / Answer
Material price variance (Actual price - standard price)*AQ purchased (2.95 - 2.50)*33000 14850 U Material quantity variance (AQ used - standard qty allowed)*std price (27,800 - 8000*3.5)*2.5 500 F
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