Question
Crede Manufacturing Company uses a standard cost accounting system. In 2020, 28,000 units were produced. Each unit took several kilograms of direct materials and 1.6
Crede Manufacturing Company uses a standard cost accounting system. In 2020, 28,000 units were produced. Each unit took several kilograms of direct materials and 1.6 standard hours of direct labour at a standard hourly rate of $15. Normal capacity was 48,500 direct labour hours. During the year, 117,600 kg of raw materials were purchased at $0.95 per kilogram. All materials purchased were used during the year.
(a) If the materials price variance was $5,880 favourable, what was the standard materials price per kilogram? (Round answer to 2 decimal places, e.g. 5.25.)
Standard price per kilogram$ - ?
(b) If the materials quantity variance was $5,600 unfavourable, what was the standard materials quantity per unit? (Round answer to 2 decimal places, e.g. 5.17.)
Standard materials quantity per unit - ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started