Question
Pharoah Inc. manufactures garden hoses for large stores. I he standard costs for a dozen garden hoses are as follows: Direct materials 24 m
Pharoah Inc. manufactures garden hoses for large stores. I he standard costs for a dozen garden hoses are as follows: Direct materials 24 m x $2 per metre = $48.00 Direct labour 3.10 hours x $12 per hour $37.20 During February, Pharoah Inc. worked on three separate orders of garden hoses. Job cost records for the month disclose the following: Lot Units in Lot Materials Used Hours Worked 4503 1,000 dozen 24,100 m 2,940 4504 1,500 dozen 36,150 m 5,200 4505 2,900 dozen 69,890 m 2,850 You have been able to gather the following information: 1. Pharoah Inc. purchased 110,000 m of material during February at a cost of $242,000. The materials price variance is recorded when goods are purchased, and all inventories are carried at standard cost. 2. The payroll department reported that production employees were paid $12.30 per hour.
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