Pratt Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor- hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $4 per pound 2$4 20.00 Direct labor: 2 hours at $7.50 per hour 15.00 Variable overhead: 2 hours at $6 per hour 12.00 Total standard cost per unit $4 47.00 During March the company produced and sold 3,500 units and incurred the following costs: Purchased 17,000 pounds of raw materials at a cost of $3.50 per pound. All of this material was used in production. Direct laborers worked 7,200 hours at a rate of $8 per hour. Total variable manufacturing overhead for the month was $40,500.

Pratt Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor- hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $4 per pound 2$4 20.00 Direct labor: 2 hours at $7.50 per hour 15.00 Variable overhead: 2 hours at $6 per hour 12.00 Total standard cost per unit $4 47.00 During March the company produced and sold 3,500 units and incurred the following costs: Purchased 17,000 pounds of raw materials at a cost of $3.50 per pound. All of this material was used in production. Direct laborers worked 7,200 hours at a rate of $8 per hour. Total variable manufacturing overhead for the month was $40,500.

Name: Pratt Company manufactures one product. Its variable manufacturing ov
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Description: Pratt Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:Direct materials: 5 pounds at $4 per pound2$.20.00Direct labor: 2 hour

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8EA: Queen Industries uses a standard costing system in the manufacturing of its single product. It...

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