CH10 HW Problem 1

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Missouri State University, Springfield *

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711

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Industrial Engineering

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Apr 3, 2024

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pdf

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Woodson Wood Products, Inc., manufactures various items from wood. One of these products is a chair. During a recent month, the company manufactured 1,700 chairs using 8,205 board feet of hardwood. The hardwood cost the company $32,000. The company’s standards for one chair are 5 board feet of hardwood, at a cost of $3.85 per board foot. Required: 1. What is the standard quantity of board feet of hardwood (SQ) that is allowed to make 1,700 chairs? 2. What is the standard materials cost allowed (SQ x SP) to make 1,700 chairs? What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? . [LO1]

Requirement 1: What is the standard quantity of board feet of hardwood (SQ) that is allowed to make 1,700 chairs? Number of chairs 1,700 Number of board feet per chair X 5 Standard board feet allowed 8,500 Requirement 2: What is the standard materials cost allowed (SQ x SP) to make 1,700 chairs? Standard board feet allowed 8,500 Standard cost per board foot x_$3.85 Total standard cost $32,725 Requirement 3: What is the materials spending variance? Actual cost incurred $32,000 Standard cost (above) 32,725 Spending variance—favorable S 725

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