Question

Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.

  

Direct Labor:	Direct Material:
Quantity, 0.25 hour	Quantity, 4 kilograms
Rate, $12.50 per hour	Price, $0.60 per kilogram

  

Actual material purchases amounted to 200,000 kilograms at $0.64 per kilogram. Actual costs incurred in the production of 40,000 units were as follows:

Direct labor:	$137,700 for 10,800 hours
Direct material:	$108,800 for 170,000 kilograms

   

Required:

Fill in the amounts in the tables below.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

A D E G Н Answer 2 Direct Material Price and quantity Variance 3 Actual Material Cost Projected Material Cost Standard Material Cost Actual Standard Standard Standard Actual Qty 5 Actual Qty X X X Quantity Price Price Price 0.64 0.6 0.6 6 170000 X 170000 X 160000 X Kilograms Kilograms Kilogram Per Per Per Kilogram Used Kilogram Used allowed Kilogram 7 9 108800 102000 96000 Unfavourable Unfavourable 6800 6000 10 11 Direct Material Price Variance Direct Material Quantity Variance 12 Unfavourable 12800 13 14 Direct Material Variance 15 16 17