Question
Problem 1 The following data for the Lewgrow Garden Supplies Company pertains to the production of 2,500 garden spades during March. The spade consists of
Problem 1 The following data for the Lewgrow Garden Supplies Company pertains to the production of 2,500 garden spades during March. The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground. Direct Materials (all materials purchased were used): Standard cost: $1.00 pr handle and $3.50 per metal tool. Total Actual cost: $11,350 Materials flexible-budget efficiency variance was $650 unfavorable Direct Manufacturing Labor: Standard cost is 5 garden spades per hour at $20.00 per hour Actual cost per hour was $21.00 Labor efficiency variance was $400 favorable. Required: 1. What is the standard direct material amount per garden spade? 2. What is the standard cost allowed for all units produced? 3. What is the total direct materials flexible-budget variance? 4. What is the direct material flexible-budget price variance? 5. What is the total actual cost of direct manufacturing labor? 6. What is the labor price variance for direct manufacturing label?
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