Build_a_Spreadsheet_10_39

Build_a_Spreadsheet_10_39 - $15.00 = $585,000 Total...

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Control valves manufactured in January: 7,800 units Actual costs: Direct labor 40,100 hr. at $14.60 DATA INPUT Direct material purchased 25,000 lb. at $2.60 Direct material used 23,100 lb. Standard prime costs: Direct material 3 lbs. at $2.50 per lb $7.50 Direct labor 5 hrs. at $15.00 per hr. 75.00 Standard prime cost per unit $82.50 SOLUTION 1) Schedule of standard production costs, based on actual production of 7,800 units: New Jersey Valve Company Camden Plant Schedule of Standard Production Costs Based on 7,800 Units For the Month of January Standard Costs Direct material 7,800 units x 3 lbs x $2.50 = $58,500 Direct labor 7,800 units x 5 hrs. x
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Unformatted text preview: $15.00 = $585,000 Total standard production costs $643,500 2) Variances: a) Direct-material price variance = (PQ x AP)- (PQ x SP) = 25,000 x $2.60 - 25,000 x $2.50 = $2,500 Unfavorable b) Direct-material quantity variance = (AQ x SP)-(SQ* x SP) = 23,100 x $2.50 - 23,400 x $2.50 = (750) Favorable * SQ = 7,800 units x 3 lbs per unit = 23,400 lbs. c) Direct-labor rate variance = (AH x AR)-(AH x SR) = 40,100 x $14.60 - 40,100 x $15.00 = (16,040) Favorable d) Direct-labor efficiency variance = (AH x SR)-(SH* x SR) = 40,100 x $15.00 - 39,000 x $15.00 = 16,500 Unfavorable * SH = 7,800 units x 5 hrs per unit = 39,000 hrs....
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