Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What formulas do I need to solve this? P11-4A Kansas Company uses a standard cost accounting system. In 2017, the company produced 28,000 units. Each

What formulas do I need to solve this?

P11-4A Kansas Company uses a standard cost accounting system. In 2017, the company produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000 direct labor hours. During the year, 117,000 pounds of raw materials were purchased at $0.92 per pound. All materials purchased were used during the year.

Instructions

(a) If the materials price variance was $3,510 favorable, what was the standard materials price per pound?

(b) If the materials quantity variance was $4,750 unfavorable, what was the standard materials quantity per unit?

(b) 4.0 pounds

(c) What were the standard hours allowed for the units produced?

(d) If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor hours worked?

(e) If the labor price variance was $9,080 favorable, what was the actual rate per hour?

(f) If total budgeted manufacturing overhead was $360,000 at normal capacity, what was the predetermined overhead rate?

(f) $7.20 per DLH

(g) What was the standard cost per unit of product?

(h) How much overhead was applied to production during the year?

(i) Using one or more answers above, what were the total costs assigned to work in process?

Compute variances, prepare an income statement, and explain unfavorable variances.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing In Savings And Credit Cooperative Societies

Authors: Daniel Njuguna

1st Edition

B0C8SCJKRT, 979-8223128649

More Books

Students also viewed these Accounting questions