Question
You have been given the following information about the production ofKarenCo., and are asked to provide the factory manager with information for a meeting with
You have been given the following information about the production ofKarenCo., and are asked to provide the factory manager with information for a meeting with the vice president of operations.
Standard Cost Card
Direct materials (9pounds at $4per pound)$36.00Direct labor (0.8hours at $10)8.00Variable overhead (0.8hours at $4per hour)3.20Fixed overhead (0.8hours at $7per hour)5.60$52.80
The following is a variance report for the most recent period of operations.
Variances
Costs
Total Standard Cost
Price
Quantity
Direct materials$410,400$5,250F$9,600UDirect labor91,2004,855U5,900U
(a)
How many units were produced during the period?
Number of unitsenter a number of units
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(b)
How many pounds of raw materials were purchased and used during the period?
Raw material Purchasedenter the number in pounds
pounds
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(c)
What was the actual cost per pound of raw materials?(Round answer to 2 decimal places, e.g. 1.25.)
Actual cost per pound of raw materials$
enter the actual cost per pound of raw materials in dollars rounded to 2 decimal places
/lb
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(d)
How many actual direct labor hours were worked during the period?
Actual direct labor hoursenter a number of hours
hours
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(e)
What was the actual rate paid per direct labor hour?(Round answer to 2 decimal places, e.g. 1.25.)
Actual rate paid per direct labor hour$
enter the actual rate paid per direct labor hour in dollars rounded to 2 decimal places
/hr
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