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The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of
The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August: |
Actual cost of direct material purchased and used: $88,400 | |
Material price variance: $3,400 unfavorable | |
Total materials variance: $23,900 unfavorable | |
Standard cost per pound of material: $5 | |
Standard cost per direct labor-hour: $5 | |
Actual direct labor-hours: 8,100 hours | |
Labor efficiency variance: $2,500 favorable | |
Standard number of direct labor-hours per unit of Roff: 2 hours | |
Total labor variance: $1,550 unfavorable |
The standard material allowed to produce one unit of Roff was: |
1 pound
4 pounds
5 pounds
3 pounds
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