Question
The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In addition, the variances for one month's production
The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In addition, the variances for one month's production are given. Assume that all inventory accounts have zero balances at the beginning of the month.
| Standard Cost Per Unit | Standard Monthly Costs | ||||||
| Materials | $ | 5.00 | $ | 14,000 | |||
| Direct Labor 3 hrs @ $2.00 | 6.00 | 16,800 | |||||
| Factory Overhead: | |||||||
| Variable | 2.00 | 5,600 | |||||
| Fixed | 5.00 | 14,000 | |||||
| $ | 18.00 | $ | 50,400 | ||||
| Variances: | ||||
| Material price | $ | 307.50 | unfavorable | |
| Material quantity | $ | 210.00 | unfavorable | |
| Labor rate | $ | 680.00 | favorable | |
| Labor efficiency | $ | 2,450.00 | unfavorable | |
What were the actual direct labor hours worked during the month?
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College Accounting A Practical Approach Chapters 1-25
Authors: Jeffrey Slater
12th Edition
013277206X, 978-0132772068
