Question
The following data for a pottery company pertain to the production of 2,000 clay pots during July. Direct Materials (All materials purchased were used.): Standard
The following data for a pottery company pertain to the production of 2,000 clay pots during July. Direct Materials (All materials purchased were used.): Standard cost: $6.00 per kilogram of clay. Total actual cost: $11,200. Standard cost allowed for units produced was $12,000. Materials efficiency variance was $240 unfavourable. Direct Manufacturing Labour: Standard cost is 2 pots per hour at $24.00 per hour. Actual cost per hour was $24.50. Actual labour was 972 hours. What is the standard direct material amount per pot?
a) 1.00 kilogram | ||
b) 3.00 kilograms | ||
c) 2.12 kilograms | ||
d) 4.00 kilograms | ||
e) 1.88 kilograms |
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