Question
I need help with a multi-part cost accounting homework question. It is P8-10 from Principles of Cost Accounting 14 edition. The standard costs for a
I need help with a multi-part cost accounting homework question. It is P8-10 from Principles of Cost Accounting 14 edition.
The standard costs for a unit of Triple X are:
Raw materials (5lbs @ $1/lb.) $5
Direct labor (1hr. @ $8/hr.) 8
Overhead (50% of direct labor costs) 4
Data from records for the month of May are: Units
Actual production 4,000
Units Sold 2,500
Debit Credit
Sales $50,000
Purchases (22,000 lbs) $23,300
Materials price variance 1,300
Materials quantity variance 1,000
Direct labor rate variance 770
Direct labor efficiency variance 1,200
Manufacturing overhead total variance 500
Compute the following:
1. Standard quantity of raw materials allowed (in pounds) for actual production.
2. Actual quantity of raw materials used ( in pounds) . (consider the materials quantity variance.)
3. Standard direct labor hours allowed.
4. Actual direct labor hours worked.
5. Actual direct labor rate. (consider the direct labor rate variance.)
6. Actual total overhead.
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