Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pete's Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product: Materials quantity

Pete's Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product:

Materials quantity per unit 1 pound

Materials price $ 6.90 per pound

Labor quantity per unit 2 hours

Labor price $ 10.90 per hour

During the year, the company made2,180 units of product. At the end of the year, the following variances had been calculated.

Materials usage variance $ 1,863 Favorable

Materials price variance $ 191 Unfavorable

Labor usage variance $ 4,251 Unfavorable

Labor price variance $ 3,325 Favorable

Required

  1. Determine the actual amount of materials used.
  2. Determine the actual price paid per pound for materials. (Round your answer to 2 decimal places.)
  3. Determine the actual labor hours used.
  4. Determine the actual labor price per hour. (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Risk Management

Authors: Mark D Abkowitz

1st Edition

0470256982, 9780470256985

More Books

Students also viewed these Accounting questions