(incomplete data Capers Home Study Products makes wooden lap desks. A small fire on October 1 partially destroyed the records relating to September’s production. The charred remains of the standard cost card appears here.

From other fragments of records and several discussions with employees, you learn the following:
• The standard quantity of material allowed for September’s production was 4,000 board feet.
• The September payroll for direct labor was $19,220 based on 1,550 ac¬ tual hours worked.
• The production supervisor distinctly remembered being held accountable for 50 more hours of direct labor than should have been worked. She was upset because top management failed to consider that she saved several hundred board feet of material by creative efforts that required extra time.
• The purchasing agent’s files showed that 4,300 board feet had been pur¬ chased in September at $2.05 per board foot. She was proud of the fact that this price was $0.05 below standard cost per foot. All purchased material had been used during the month.

a. How many units were produced during September?

b. Calculate all variances for direct material and direct labor for September.

c. What is the standard number of hours allowed for the production of each unit?

d. Prepare general journal entries reflecting direct material and direct labor activity and variances for September, assuming a standard cost, perpetual inventory system.LO.1

Transcribed Image Text:

Standard Quantity Standard Price Direct material...... Direct labor......... .5.0 board feet $12.50 per hour