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View the information: Only part 3 needs an answer On May 1, 2017. Bovar Company began the manufacture of a new paging machine known as
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Only part 3 needs an answer
On May 1, 2017. Bovar Company began the manufacture of a new paging machine known as Dandy. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit of Dandy and other information follow: (Click the icon to view the information) Data Table s 12.00 The standard costs for a unit of Dandy follow: Direct materials (3 lb. at 54 per lb.) Direct manufacturing labor (1/2 hour at $20 per hour) Manufacturing overhead (75% of direct manufacturing labor costs) 10.00 7.50 S 29.50 The following data were obtained from Bovar's records for the month of May Debit Credit Revenues S 125.000 55.000 S 3,500 Accounts payable control (for May's purchases of direct materials) Direct materials price variance Direct materials efficiency variance Direct manufacturing labor price variance Direct manufacturing labor efficiency variance 2.400 1,890 2.200 Actual production in May was 4,000 units of Dandy, and actual sales in May were 2.500 units. The amount shown for direct materials price variance applies to materials purchased during May. There was no beginning inventory of materials on May 1, 2017. 1. Compute the standard direct manufacturing labor-hours allowed for actual output produced. (Enter rates to two decimal places. Round your final answer to the nearest whole number.) Standard DL hours per unit = Actual units produced 4,000 Standard direct manuf. labor-hours allowed for actual output produced 2,000 hours 0.50 hours 2. Compute the actual direct manufacturing labor-hours worked. (Round your answer to the nearest whole dollar.) Efficiency variance Budgeted DL rate per hour ( ($ Flexible budget for DL 40.000 Actual direct mfg. = labor-hours worked 1,890 hours 2.200 ) $ 20 = 3. Compute the actual direct manufacturing labor wage rate. (Round your answer to the nearest whole dollar.) Actual DL cost Actual DL hours = Actual direct mfg. labor wage rate per hourStep by Step Solution
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