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You have been given the following information about the production of Usher Co.,

ID: 2574243 • Letter: Y

Question

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. Direct materials (8 pounds at $4 per pound) Direct labor (0.70 hours at $8) Variable overhead (0.70 hours at $3 per hour) Fixed overhead (0.70 hours at $7 per hour) Standard Cost Card $32.00 5.60 2.10 4.90 $44.60 The following is a variance report for the most recent period of operations. Variances Costs Total Standard Cost Price Quantit Direct materials Direct labor $407,000 $5,170 F $9,300 U 71,226 3,800 U 6,300 U (a) How many units were produced during the period? (Round answer to 0 decimal places, e.g. 125.) Number of units

Explanation / Answer

(a) Number of units = Total standard cost ÷ Standard cost per unit

Number of units = $407,000 ÷ $32 = 12,719

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