Question
1.Mentor company manufactures butcher block tables. Each table requires the following dirct materials, direct labor and overhead. Standard qualityprice(rate) standard cost 2'' clear maple 12
1.Mentor company manufactures butcher block tables. Each table requires the following dirct materials, direct labor and overhead.
Standard qualityprice(rate) standard cost
2'' clear maple 12 bd. ftP 1.00 per bd. Ft.P 12.00
Direct labor 2 hours9.00 per hour18.00
Variable overhead2 hours2.50 per hour5.00
Fixed overhead2 hours2.00 per hour4.00
TOTALP 39.00
During January, the following transactions occurred:
1.Purchases of lumber amounted to P 63,525. The price paid was P1.05 board foot. There was no direct materials inventory at the beginning or end of the month. The price variance is recorded at the time of purchase.
2.The direct labor cost was P96,075. The hourly rate of pay was P 9.15.
3.There was no work in process inventrory on January 31,2016, and 5,000 tables were manufactured.
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