Kansas Company uses a standard cost accounting system. In 2014, the company prod
ID: 2421785 • Letter: K
Question
Kansas Company uses a standard cost accounting system. In 2014, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $11.00. Normal capacity was 49,510 direct labor hours. During the year, 130,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year.
If the materials quantity variance was $5,396 unfavorable, what was the standard materials quantity per unit?
What was the standard cost per unit of product?
Using one or more answers above, what were the total costs assigned to work in process?
Explanation / Answer
(SQ - AQ) x Actual rate = - 5396
(SQ - 130200) x 0.94 = -5396
SQ = 124460
SQ per unit = 124460/28300 = 4.40 pounds per unit
Standard cost per unit = $11 + 0.94
= $11.94
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