Question:New Jersey Valve Company manufactured 8,300 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:

Direct labor 34,100 hr. at $14.80 per hr.Direct material purchased 29,000 lb. at $3.20 per lb.Direct material used 24,600 lb.

The control valve has the following standard prime costs:

Direct material 3lb. at $3.10 per lb.$9.30Direct labor 4hr. at $15.20 per hr.60.80Standard prime cost per unit$70.10

Required:

1. Prepare a schedule of standard production costs for January, based on actual production of 8,300 units.
2. For the month of January, compute the following variances.

Required 1

Complete this question by entering your answers in the tabs below.

Prepare a schedule of standard production costs for January, based on actual production of8,300 units.

NEW JERSEY VALVE COMPANY: CAMDEN PLANT Schedule of Standard Production Costs Based on 8,300 Units

For the Month of January Standard Costs

a.Direct material

b.Direct labor

c. Total standard production costs

Required 2

Complete this question by entering your answers in the tabs below.

For the month of January, compute the following variances.(Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

a.Direct-material price variance

b.Direct-material quantity variance

c.Direct-material purchase price variance

d.Direct-labor rate variance

e.Direct-labor efficiency variance