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Nakatomi Trading Corp. has compiled the below data, and it's up to you to extrapolate some key financial information for an upcoming meeting. Standard Cost
Nakatomi Trading Corp. has compiled the below data, and it's up to you to extrapolate some key financial information for an upcoming meeting. Standard Cost Card $18.00 4 Direct materials (6 kg are required with a cost of $3 per kilogram) Direct labour (0.8 hours are required at a cost of $5 per hour) Variable overhead (0.8 hours are required at a cost of $3 per hour) Fixed overhead (0.8 hours are required at a cost of $7 per hour) 2.4 5.6 $30.00 A production report is provided below for the current year. Volume Costs Direct materials Direct labour Variable overhead Fixed overhead Total Standard Cost $405,000 90,000 54,000 126,000 Price/Rate $5,500 F $3,750 U Variances Spending/ Budget Quantity/ Efficiency $7,200 U $6,000 U $1,300 F $500 F $14,000 U Instructions a) How many units were produced during the period? b) How many actual kilograms of raw material were used during the period? c) What was the actual cost per kilogram of raw materials? d) How many actual direct labour hours were worked during the period? e) What was the actual rate paid per direct labour hour
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