Kansas Company uses a standard cost accounting system. In 2020, the company 5. produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000 direct labor hours. During the year, 117,000 pounds of raw materials were purchased at $0.92 per pound. All materials purchased were used during the year. Instructions (Show all of your work.... No credit for just an answer) a. If the materials price variance was $3,510 favorable, what was the standard materials price per pound? b. If the materials quantity variance was $4,750 unfavorable, what was the standard materials quantity per unit? C. What were the standard hours allowed for the units produced? d. If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor hours worked? e. If the labor price variance was $9,080 favorable, what was the actual rate per hour? f. If total budgeted manufacturing overhead was $360,000 at normal capacity, what was the predetermined overhead rate? g. What was the standard cost per unit of product? h. How much overhead was applied to production during the year? i. Using one or more answers above, what were the total costs assigned to work in process?
Kansas Company uses a standard cost accounting system. In 2020, the company 5. produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000 direct labor hours. During the year, 117,000 pounds of raw materials were purchased at $0.92 per pound. All materials purchased were used during the year. Instructions (Show all of your work.... No credit for just an answer) a. If the materials price variance was $3,510 favorable, what was the standard materials price per pound? b. If the materials quantity variance was $4,750 unfavorable, what was the standard materials quantity per unit? C. What were the standard hours allowed for the units produced? d. If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor hours worked? e. If the labor price variance was $9,080 favorable, what was the actual rate per hour? f. If total budgeted manufacturing overhead was $360,000 at normal capacity, what was the predetermined overhead rate? g. What was the standard cost per unit of product? h. How much overhead was applied to production during the year? i. Using one or more answers above, what were the total costs assigned to work in process?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
Related questions
Question
Transcribed Image Text:Kansas Company uses a standard cost accounting system. In 2020, the company
5.
produced 28,000 units. Each unit took several pounds of direct materials and 1.6
standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity
was 50,000 direct labor hours. During the year, 117,000 pounds of raw materials
were purchased at $0.92 per pound. All materials purchased were used during the
year.
Instructions (Show all of your work.... No credit for just an answer)
a.
If the materials price variance was $3,510 favorable, what was the standard materials
price per pound?
b.
If the materials quantity variance was $4,750 unfavorable, what was the standard
materials quantity per unit?
C.
What were the standard hours allowed for the units produced?
d.
If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor
hours worked?
e.
If the labor price variance was $9,080 favorable, what was the actual rate per hour?
f.
If total budgeted manufacturing overhead was $360,000 at normal capacity, what was
the predetermined overhead rate?
g.
What was the standard cost per unit of product?
h.
How much overhead was applied to production during the year?
i.
Using one or more answers above, what were the total costs assigned to work in
process?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub