Question

I Just Cleaned Up This Mess is a manufacturer of cleaning products. During the period just ended, $62,400 in direct materials were purchased. All of the direct materials purchased were used in production. The direct material price variance for the period was $4,800 unfavorable; the total direct material variance was $14,400 unfavorable. The cost of direct material was expected to be $6 per pound. 3.800 actual direct labor hours were logged during production. The direct labor cost was expected to be $16 per unit of product. Additional information related to direct labor is as follows: standard direct labor rate direct labor efficiency variance $8 per direct labor hour ||$1,600 favorable $680 unfavorable total direct labor variance Using the above data, calculate the following: The number of units produced during the period were l. The standard quantity of material allowed to produce one unit of product was pounds per unit. (round to the nearest whole number) The actual direct labor rate was $ per hour. (round to the nearest penny)

Answer 1

Ans. Standard Rate = $16 unit and = 8 per hour Thas standard hours per unit - unit = 2 hours per Calculation of standard hours Direct Labour efficiency variance = SR (SH-Alt) 1600 = 8 (SH-3800) - SH= 200 +380 = 4000 hours o number of units Produced = Total standard hours units of output HOOD 2000 units 2. through calculation of Al Direct material Price variance mpv= AQXAP - Aax SP 4800 = 6240 - Aax 6 -: AO = 62400-4800 = $5760 9600 Pounds

JE Total bisect material variance = AQXAP - SOXSP 14400 = 62400 - SOX6 sox 6 = 6240-14400 iso = 4800 = 8000 Pounds Standard Quantity per unit = orty Total Standard units 8000 2000 4 Pounds per unit calculation of actual rate for direct labor Total direct Labor cariance AHHAR SHAJR $680 = (380 *AR)- (Court $8) 680 = 3800 XAR-3200 -- AR= $8.6 per hour
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