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Need some help with this one, i got stuck prety early, what are rhe ancwers, and an explination would be great! thanks Becton Labs, Inc.,
Need some help with this one, i got stuck prety early, what are rhe ancwers, and an explination would be great! thanks
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows Standard Quantity or Hours Standard Price or Rate $28.00 per ounce $13.00 per hour s 3.60 per hour Standard Cost Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit 2.50 ounces 0.50 hours 0.50 hours $ 70.00 6.50 1.80 $ 78.30 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 13,500 ounces at a cost of $361,800 b. There was no beginning inventory of materials; however, at the end of the month, 2,900 ounces of material remained in ending C. The company employs 21 lab technicians to work on the production of Fludex. During November, they each worked an average of d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs e. During November, the company produced 4,200 units of Fludex. inventory 140 hours at an average pay rate of $11.50 per hour. during November totaled $4,400 Required 1. For direct materials a. Compute the price and quantity variancesStep by Step Solution
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