Question
Kansas Company uses a standard cost accounting system. In 2020, the company produced27,800units. Each unit took several pounds of direct materials and 1.6 standard hours
Kansas Company uses a standard cost accounting system. In 2020, the company produced27,800units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was50,500direct labor hours. During the year,131,400pounds of raw materials were purchased at $0.95per pound. All materials purchased were used during the year.
a-If the materials price variance was $5,256favorable, what was the standard materials price per pound?
b-If the materials quantity variance was $19,998unfavorable, what was the standard materials quantity per unit?
c-What were the standard hours allowed for the units produced?
d-If the labor quantity variance was $8,400unfavorable, what were the actual direct labor hours worked?
e-If the labor price variance was $18,072favorable, what was the actual rate per hour?
f-If total budgeted manufacturing overhead was $343,400at normal capacity, what was the predetermined overhead rate based on direct labor hours?
g-What was the standard cost per unit of product?
h-How much overhead was applied to production during the year?
i-Using one or more answers above, what were the total costs assigned to work in process?
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