Question
Alvarado company produces a product that requires 2.5 stardard pounds per unit at a standard price of $3.60 per pound. Assume alvarado sold 15,000 unity
Alvarado company produces a product that requires 2.5 stardard pounds per unit at a standard price of $3.60 per pound. Assume alvarado sold 15,000 unity at $176 per unit. The company used 36,000 pounds to produce 15,000 units, which were purchased at $3.85 per pound. Each unit requires 4 standard direct labor hours per unit at a standard hourly rate of $20.05 per hour. For the 15,000 units produces, 61,600 hours were needed and employees were paid an hourly rate of $19.90 an hour. The company uses a standard variable overhead cost per unit of $0.80 per direct labor hour. Actual variable factory overhead was $35,180. The company uses a standard fixed overhead cost per unit of $1.05 per direct labor hour at 58,000 hours, which is 100% of normal capacity.
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