Question
MAX Nut company is growing. Actual results : Total cost of purchasing material.................................................... $13,500 Number of labor hours worked...................................................... 450 hours Number of material pounds
MAX Nut company is growing.
Actual results:
Total cost of purchasing material.................................................... $13,500
Number of labor hours worked...................................................... 450 hours
Number of material pounds used in production.................. 1,700 pounds
Total labor cost.................................................................................... $12,500
Number of units produced............................................................... 200 units
Number of material pounds purchased................................. 1,500 pounds
MAX follows these rules:
Standard labor rate............................................................... $30.00 per hour
Number of labor hours to produce one unit..................................... 2 hours
During the year, Max's Materials Price Variance was FAVORABLE for a total of $1,500 and Materials Quantity Variance was FAVORABLE for a total of $5,000.
What is thestandardnumber of poundsneeded to produce one unit?
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