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Easy Roller, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate)
Easy Roller, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: |
Standard Quantity | Standard Price (Rate) | Standard Unit Cost | |||||
Direct costs | |||||||
Plastic | 12 | sq ft. | $ | 0.75 | per sq. ft. | $ | 9.00 |
Direct labor | .25 | hr. | 12.00 | per hr. | 3.00 | ||
Variable manufacturing overhead | 1.20 | per direct labor hour | 0.30 | ||||
Fixed manufacturing overhead ($360,000/900,000 units) | 0.40 | ||||||
|
Easy Roller had the following actual results for the past year. |
Number of units produced and sold | 1,000,000 | |
Number of square feet of plastic used | 11,800,000 | |
Cost of plastic purchased and used | $ | 8,260,000 |
Number of labor hours worked | 245,000 | |
Direct labor cost | $ | 2,891,000 |
Variable overhead cost | $ | 318,500 |
Fixed overhead cost | $ | 355,000 |
|
Required: |
Calculate Easy Roller |
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