Schmidt Machinery Company (Exhibit 14.5) used 3,375 pounds of aluminum in June to manufacture 900 units. The firm paid $30 per pound during the month to purchase aluminum. On June 1, the company had 50 pounds of aluminum on hand. At the end of June, the firm only had 25 pounds of aluminum in its warehouse. Schmidt spent 4,200 direct labor-hours in June, at an average cost of $42 per hour.

EXHIBIT 14.5

Standard Cost Sheet

Pounds of aluminum used in June		3375
No. of units manufactured in June		900
Std. lbs. of aluminum/unit produced		4
Price/lb.during the month to purchase aluminum		30
Standard Price/lb. (Exhibit 14.5)		25
Beginning Inventory (lbs. of aluminum)		50
Ending Inventory (lbs. of aluminum)		25
Actual Direct labor hours worked in June		4200
Standard DLH/unit produced (Exhibit 14.5)		5
Standard wage rate/DLH (Exhibit 14.5)		40
Average wage rate/DLH during the month		42

Required
Compute for June, Schmidt Machinery Company’s
1. Purchase-price and usage variances for aluminum.
2. Direct labor rate and efficiencyvariances.

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Exhibit 14-11,