Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rendolin Inc. has developed the following budget data based on 100,000 direct labor hours (50,000 units @ 2 direct labor hours each). Budgeted cost at

Rendolin Inc. has developed the following budget data based on 100,000 direct labor hours (50,000 units @ 2 direct labor hours each).

Budgeted cost at 50,000 units

Direct materials

$720,000

Direct labor

$1,200,000

Total

$1,920,000

During the last period, the company actually produced 48,000 units.

Actual costs were:

Actual cost at 48,000 units

Direct materials (230,400 grams purchased and used)

$737,280

Direct labor (100,000 hours)

$1,150,000

Total

$1,887,280

1. Complete the following cost sheet for Rendolin Inc. based on the budgeted data, above. (You would not use actual data until you started computing variances.)

Type letters A-D each on a line in the answer box with your final answer next to the letter.

You can show work below where you answer these and #2.

Standard Quantity

Standard Price

Standard Cost per Unit

Direct materials

B. ??? grams

$3.00 per gram

A. $ ???

Direct labor

2 hours

C. $ ??? per hour

$ 24

Total

D. $???

2. How much SHOULD it cost (for materials and labor combined) to produce 48,000 units? Hint: "D" above is what it SHOULD cost for 1 unit. See if your answer for D makes sense given the budgeted cost for 50,000 unit

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

Step: 3

blur-text-image

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

Principles Of Auditing

Authors: Vasuhi M

1st Edition

6206150747, 978-6206150749

More Books

Students also viewed these Accounting questions

Question

Draft a proposal for a risk assessment exercise.

Answered: 1 week ago