Direct labor Direct material purchased Direct material used 48,900 hr. at $15.20

Question

Direct labor Direct material purchased Direct material used 48,900 hr. at $15.20 per hr. 25,000 1b. at $3.30 per 1b. 23,400 1b. The control valve has the following standard prime costs: Direct material3 lb. at $3.20 per lb. Direct labor $9.60 93.00 $102.60 ok 6 hr. at $15.50 per hr Standard prime cost per unit nt nces Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,000 units 2. For the month of January, compute the following variances. Complete this question by entering your answers in the tabs below

Explanation / Answer

Answer 1. NEW JERSEY VALVE COMPANY: CAMDEN PLANT Schedule of Standard Production Costs Based on 8,000 Units For the Month of January Direct Material - 8,000 Units X 3lb. X $3.20      76,800.00 Direct Labor - 8,000 Units X 6 Hrs X $15.50    744,000.00 Total Standard Production Costs    820,800.00 Answer 2. SQ/SH SR Total AQ / AH AR Total Direct Material      24,000.00           3.20      76,800.00    23,400.00           3.30      77,220.00 Direct Labor      48,000.00         15.50    744,000.00    48,900.00         15.20    743,280.00 Direct Material Price Variance = (SR - AR) X AQ Used Direct Material Price Variance = ($3.20 - $3.30) X 23,400 lb Direct Material Price Variance = $2,340 (U) Direct Material Quantity Variance = (SQ - AQ) X SR Direct Material Quantity Variance = (24,000 lb - 23,400 lb) X $3.20 Direct Material Quantity Variance = $1,920 (F) Direct Material Purchase Price Variance = (SR - AR) X AQ purchased Direct Material Purchase Price Variance = ($3.20 - $3.30) X 25,000 lbs Direct Material Purchase Price Variance = $2,500 (U) Direct Labor Rate Variance = (SR - AR) X AH Direct Labor Rate Variance = ($15.50 - $15.20) X 48,900 hrs Direct Labor Rate Variance = $14,670 (F) Direct Labor Efficiency Variance = (SH - AH) X SR Direct Labor Efficiency Variance = (48,000 hrs - 48,900 hrs) X $15.50 Direct Labor Efficiency Variance = $13,950 (U)

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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