Materials and Labor-Missing Information. You have been asked to provide your supervisor with cost information about operations

Question:

Materials and Labor-Missing Information. You have been asked to provide your supervisor with cost information about operations in the South Euclid plant. Unfortunately, you are furnished with only partial information; you must calculate much of what is needed. The information you have to work with is as follows:

1. The company purchased 350,000 units of direct materials for the South Euclid plant during the month. The standard price is \(\$ 3.10\).

2. Raw materials at the beginning of the month at the standard price cost \(\$ 52,700\). The standard price has not changed during the past two months.

3. Raw materials at the end of the month at the standard price cost \(\$ 108,500\).

4. The materials price variance was unfavorable by \(\$ 175,000\).

5. The materials usage variance was unfavorable by \(\$ 21,700\).

6. Actual direct labor cost was \(\$ 320,000\), but the labor rate variance was unfavorable by \(\$ 10,000\).

7. Actual direct labor hours were 32,000 .

8. The plant manufactured 65,000 units of product.

9. The labor efficiency variance was favorable by \(\$ 15,000\).

\section*{Required:}

Using the data provided, furnish the following information:

(a) Actual quantity of raw materials withdrawn from inventory for use in production at the standard price.

(b) Actual cost of materials purchased.

(c) Number of units of raw materials needed for each unit of product according to the standard.

(d) Standard direct materials cost of production.

(e) Standard direct labor cost of production.

(f) The standard labor rate per hour.

(g) Standard labor hours per product unit.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9780538842822

9th Edition

Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson

Question Posted: