lated above, and suggest espon E11-9 You have been given the following informati

Question

lated above, and suggest espon E11-9 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. 772 Standard Cost Card Direct materials (5 pounds at $4 per pound) Direct labor (0.8 hours at $10) Variable overhead (0.8 hours at $3 per hour) Fixed overhead (0.8 hours at $7 per hour) $20.00 8.00 2.40 5.60 $36.00 The following is a variance report for the most recent period of operations. Variances Costs Total Standard Cost Price Quantity Direct materials Direct labor $410,000 180,000 $2,095 F 3,840 U $9,000 U 6,000 U Instructions (a) How many units were produced during the period? (b) How many pounds of raw materials were purchased and used during the period? (c) What was the actual cost per pound of raw materials? (d) How many actual direct labor hours were worked during the period? (e) What was the actual rate paid per direct labor hour? (CGA adapted) a17 l.. Tal R nia Camnany swnrked on four iobs. A review of

Explanation / Answer

a) Direct material Total standard cost 410000 Cost per unit 20 Number of units produced 20500 (410000/20) b) Standard Material for actual production 20500*5 1,02,500 Pounds Direct material quantity variance=   ( Actual material - Standard material for acual production) *Standard rate 9000 = (Actual material -102500)* 4 Actual material 104750 pounds c) Material cost variance = 2095-9000 6905 U Total standard cost 410000 Add Material cost variance 6905 Actual cost 416905 (410000+6905) Actual material used 104750 Actual cost per pound of raw material 3.98 (416905/104750) d) Standard labor hours for actual production 20500*.8 16,400 Hours Labor Effeciency variance= (Actual hours - Standard hours for acual production) *Standard rate 6000 (actual hours - 16400)* 10 Actual hours 17000 Hours e) Labor rate variance = (Actual rate -Standard rate) * Actual hours 3840 (actual rate - 10) 17000 Actual rate 10.23

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