Question:

P11-4AKansas Company uses a standard cost accounting system. In 2017, the company produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000 direct labor hours. During the year, 117,000 pounds of raw materials were purchased at $0.92 per pound. All materials purchased were used during the year.

Instructions

1. 1 If the materials price variance was $3,510 favorable, what was the standard materials price per pound?
2. 2.Ifthematerialsquantityvariancewas$4,750unfavorable,whatwasthestandardmaterialsquantityperunit?
3. (b)4.0pounds
4. 3. Whatwerethestandardhoursallowedfortheunitsproduced?
5. 4. If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor hours worked?
6. 5 Ifthelaborpricevariancewas$9,080favorable,whatwastheactualrateperhour?

6. If total budgeted manufacturing overhead was $360,000 at normal capacity, what was the predetermined overhead rate?

(f) $7.20 per DLH

1. 7.Whatwasthestandardcostperunitofproduct?
2. 8. How much overhead was applied to production during the year?
3. 9 Using one or more answers above, what were the total costs assigned to work in process?

Compute variances, prepare an income statement, and explain unfavorable variances.