Multiflow Products manufactures a single product, for which the following standards have been developed:

During October, the company purchased 15,200 feet of direct materials at a cost of \(\$ 47,880\), all of which was used in the production of 3,000 units.

A total of 5,400 hours was spent on production during the month. The actual cost of direct labor was \(\$ 61,560\). The following labor variances have been computed:

a. For direct materials, compute (1) the actual cost paid for materials per foot, (2) the materials price variance, and (3) the materials usage variance.

b. For direct labor, compute (1) the standard labor rate per hour, (2) the standard hours allowed for the output of 3,000 units, and (3) the standard hours allowed per unit of product.

c. What is the value of direct materials and direct labor that has been applied to the work-in-process inventory account during the month, in total and on a per-unit basis?

Transcribed Image Text:

Direct materials Direct labor Standard Quantity or Hours 5 feet Standard Price or Rate $3 per foot Standard Cost $15 ? hours ? per hour ?