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Author Question: Anderson Company manufactures a single product. The direct materials standard calls for 3 kilograms ... (Read 122 times)

futuristic

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Anderson Company manufactures a single product.  The direct materials standard calls for 3 kilograms of direct material per unit.  The standard for direct material cost per kilogram is $15.50.  A computer error has wiped out the records for the direct labour standards but the following information is found for the month of October:

Number of units produced700
Cost of actual direct materials purchased and used $33,000.00
Actual direct labour hours used 1,450
Actual direct labour cost incurred $21,025.00
Materials price variance -- favourable $1,100.00
Labour efficiency variance -- unfavourable $712.50
Total labour variance--unfavourable $1,075.00

Required:
1.  Calculate the number of kilograms of direct materials purchased and used during October.
2.  Calculate the materials efficiency (quantity) variance.
3  Calculate the standard direct labour rate per hour.
4.  Calculate the standard direct labour hours allowed for October's production.


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Marked as best answer by futuristic on Jan 5, 2020

mceravolo

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futuristic

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Reply 2 on: Jan 5, 2020
Great answer, keep it coming :)


zacnyjessica

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Reply 3 on: Yesterday
Excellent

 

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