The company also uses standard costing techniques and the following data has been provided for the month of February: The standard cost to product one unit of product A includes 2 pounds of material at a standard cost of $ 4.00 per pound. During the month, 27,000 pounds of materials were purchased at a cost of $ 3.80 per pound and was used to produce 13,000 units of Product A The standard labour cost to produce the unit includes 3 hours of work at an hourly rate of $ 10.00 per hour. For the month, 30,500 hours of labour are incurred at a cost of $ 10.10 per hour to produce 10,000 units. You are asked to prepare reports showing: 1.The total materials Variance 2.The Price and Quantity materials Variance 3.The Labour price and quantity Variance.
The company also uses standard costing techniques and the following data has been provided for the month of February: The standard cost to product one unit of product A includes 2 pounds of material at a standard cost of $ 4.00 per pound. During the month, 27,000 pounds of materials were purchased at a cost of $ 3.80 per pound and was used to produce 13,000 units of Product A The standard labour cost to produce the unit includes 3 hours of work at an hourly rate of $ 10.00 per hour. For the month, 30,500 hours of labour are incurred at a cost of $ 10.10 per hour to produce 10,000 units. You are asked to prepare reports showing: 1.The total materials Variance 2.The Price and Quantity materials Variance 3.The Labour price and quantity Variance.
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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B 2) The company also uses
- The standard cost to product one unit of product A includes 2 pounds of material at a standard cost of $ 4.00 per pound. During the month, 27,000 pounds of materials were purchased at a cost of $ 3.80 per pound and was used to produce 13,000 units of Product A
- The standard labour cost to produce the unit includes 3 hours of work at an hourly rate of $ 10.00 per hour. For the month, 30,500 hours of labour are incurred at a cost of $ 10.10 per hour to produce 10,000 units.
You are asked to prepare reports showing:
1.The total materials Variance
2.The Price and Quantity materials Variance
3.The Labour price and quantity Variance.
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