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Dalek, Inc. produces scented candles using a standard costing system with the following standards for materials and labor: Standard Quantity Standard Price Candle Wax (ounces)
Dalek, Inc. produces scented candles using a standard costing system with the following standards for materials and labor: Standard Quantity Standard Price Candle Wax (ounces) 8 0.25 Cotton Wicks (each) 1 0.05 Scented Oil (ounces) 0.50 0.10 Direct labor (hours) 0.25 15.00 Actual candle production was: 125,000 Scented Candles There were no beginning or ending inventories of the materials used to make candles. Actual Qty Purchased/Used Actual Price Candle Wax (ounces) 975,000 0.2725 Cotton Wicks (each) 126,250 0.0450 Scented Oil (ounces) 63,750 0.0975 Direct labor (hours) 32,500 16.2500 1) Compute the total standard cost to produce 25,000 scented candles. 2) Compute the total materials and labor variances. 3) Break down the total material variances into price and usage variances. 4) Breakdown the total labor variance into rate and efficiency variances.
| Dalek, Inc. produces scented candles using a standard costing system with the following standards for materials and labor: | |||||||||
| Standard Quantity | Standard Price | ||||||||
| Candle Wax (ounces) | 8 | 0.25 | |||||||
| Cotton Wicks (each) | 1 | 0.05 | |||||||
| Scented Oil (ounces) | 0.50 | 0.10 | |||||||
| Direct labor (hours) | 0.25 | 15.00 | |||||||
| Actual candle production was: | 125,000 | Scented Candles | |||||||
| There were no beginning or ending inventories of the materials used to make candles. | |||||||||
| Actual Qty Purchased/Used | Actual Price | ||||||||
| Candle Wax (ounces) | 975,000 | 0.2725 | |||||||
| Cotton Wicks (each) | 126,250 | 0.0450 | |||||||
| Scented Oil (ounces) | 63,750 | 0.0975 | |||||||
| Direct labor (hours) | 32,500 | 16.2500 | |||||||
| 1) | Compute the total standard cost to produce 25,000 scented candles. | ||||||||
| 2) | Compute the total materials and labor variances. | ||||||||
| 3) | Break down the total material variances into price and usage variances. | ||||||||
| 4) | Breakdown the total labor variance into rate and efficiency variances. | ||||||||
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
22nd edition
9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275
