22) The following data for the Prender Company pertain to the production of 800
ID: 2584594 • Letter: 2
Question
22) The following data for the Prender Company pertain to the production of 800 urns during August Direct Materials (all materials purchased were used): Standard cost: $4.80 per pound of urn. Total actual cost: $4,480 Standard cost allowed for units produced was $4,800. Materials efficiency variance was $96 unfavorable. Direct Manufacturing Labor: Standard cost is 2 urns per hour at $19.20 per hour. Actual cost per hour was $19.60 Labor efficiency variance was $288 favorable. Required: a. What is standard direct material amount per urn? b. What is the direct material price variance? c. What is the total actual cost of direct manufacturing labor? d. What is the labor price variance for direct manufacturing labor?Explanation / Answer
Answer:-a)- Standard cost per urn =$4800/800 urns =$6.00 per urn
Standard number of pounds per urn =$4.80/$6.00 =.80 pound per urn
b)- Material price variance =Total material cost variance – Efficiency variance
=$320 Favourable - $96 Unafaourable
=$416 Favourable
Where:-
Material cost variance = Standard cost- Actual cost
= $4800-$4480 =$320 Favourable
c)- Total standard labor cost of actual hours:-
={(800 urn/2)*$19.20 per hour}*-$288 Favourable
=$7392
Actual hours =$7392/$19.20 per hour =385 hours
Actual labor costs=385 hours*$19.60 per hour =$7546
d)- Labor price variance =(Standard rate per hour- Actual rate per hour)* Actual hours
=($19.20 per hour-$19.60 per hour)*385 hours
=$154 Unfavourable
Or
= $7392-$7546 = =$154 Unfavourable
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.