Question
Kansas Company uses a standard cost accounting system. In 2014, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6
Kansas Company uses a standard cost accounting system. In 2014, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $11.00. Normal capacity was 50,230 direct labor hours. During the year, 131,600 pounds of raw materials were purchased at $0.95 per pound. All materials purchased were used during the year.
If the labor quantity variance was $5,170 unfavorable, what were the actual direct labor hours worked?
If the labor price variance was $6,695 favorable, what was the actual rate per hour?
If total budgeted manufacturing overhead was $366,679 at normal capacity, what was the predetermined overhead rate?
What was the standard cost per unit of product?
How much overhead was applied to production during the year?
Using one or more answers above, what were the total costs assigned to work in process?
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