Backflush method 1 Barblite Company established the following standards for the pro- duction of wooden lamp bases:

During July, the firm bought enough materials for 10,000 lamp bases and paid $115,000. Lathe operators produced 8,000 lamp bases in 3,100 hours at a cost of $59,800. There were no materials quantity variances. Sales were 7,000 units at $25 per unit.

Transcribed Image Text:

Standard labor rate Standard labor time Standard materials $18 per hour 0.4 hour per lamp base $10 per lamp base