Author Question: Anderson Company manufactures a single product. The direct materials standard calls for 3 kilograms ... (Read 100 times)

futuristic · **on:** Jan 5, 2020

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 produced	700
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.

mceravolo · **Reply #1 on:** Jan 5, 2020

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