Question
UESTION 1 Niven Company has developed the following standards for one of its products: Direct materials: 8 kg $8.5 per kilogram Direct labour: 3 hours
UESTION 1 -
Niven Company has developed the following standards for one of its products:
Direct materials:
8 kg$8.5 per kilogram
Direct labour:
3 hours$13 per hour
The following activity occurred during the month of April:
Materials purchased:
5,000 kg costing $42,500
Materials used:
3,600 kg
Units produced:
500 units
Direct labour:
1,150 hours at $11.80 per hour
The company records materials price variances at the time of purchase. What is the variable standard cost per unit for materials and labour?
$38
$74
$98
$107
Niven Company has developed the following standards for one of its products:
| Direct materials: | 8 kg$8.5 per kilogram |
| Direct labour: | 3 hours$13 per hour |
The following activity occurred during the month of April:
| Materials purchased: | 5,000 kg costing $42,500 |
| Materials used: | 3,600 kg |
| Units produced: | 500 units |
| Direct labour: | 1,150 hours at $11.80 per hour |
The company records materials price variances at the time of purchase. What is the variable standard cost per unit for materials and labour?
| $38 |
| $74 |
| $98 |
| $107 |
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Understanding Financial Accounting
Authors: Christopher D. Burnley
2nd Canadian Edition
1119406927, 978-1119406921
