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Grand River Manufacturing produces a metal flange that it sells to several local home building supply retailers. The company has set standards as follows for
Grand River Manufacturing produces a metal flange that it sells to several local home building supply retailers. The company has set standards as follows for materials and labour: |
Direct Materials | Direct Labour | ||
Standard quantity or hours per unit | 1.4 kilograms | ? hours | |
Standard price or rate | $2 per kilogram | $ | ? per hour |
Standard cost per unit | $2.80 | $ | ? |
During the past month, the company purchased 1,680 kilograms of direct materials at a cost of $3,024. All of this material was used in the production of 1,050 units of product using 530 hours of direct labour. Direct labour cost totalled $7,420 for the month. The following variances have been computed: |
Labour rate variance | $ | 530 | U |
Total labour variance | $ | 510 | F |
Materials quantity variance | $ | 420 | U |
Required: |
1. | Compute the following for direct labour. (Round "hours per unit" answer to 2 decimal places.) |
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