(Incomplete data) Freeport Surgical Supply manufactures latex surgical gloves. It takes .85 square feet of latex to...
Question:
(Incomplete data) Freeport Surgical Supply manufactures latex surgical gloves. It takes .85 square feet of latex to manufacture a pair of gloves. The standard price for material is $.60 per square foot. Most processing is done by machine; the only labor required is for operators, who are paid $10.50 per hour. The machines can produce 400 pairs of gloves per hour.
During one week in May, Freeport Surgical produced 20,000 pairs of gloves and experienced a $180 unfavorable material quantity variance. The company had purchased 2,000 more square feet of material than it used in production that week, producing a favorable price variance of $946. Based on 42 total actual labor hours to produce the gloves, a $21 favorable total labor variance was generated.
Determine the following amounts:
a. Standard quantity of material allowed
b. Actual quantity of material used
c. Actual quantity of material purchased
d. Actual price of material purchased
e. Standard hours allowed for production
f. Labor efficiency variance g. Labor rate variance h. Actual labor rate.LO1
Step by Step Answer:
Cost Accounting Traditions And Innovations
ISBN: 9780538880473
3rd Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney