1.The standard cost of Product B manufactured by Pharrell Company includes 3.7 units of direct materials at $6.2 per unit. During June, 27,100 units of direct materials are purchased at a cost of $6.10 per unit, and 27,100 units of direct materials are used to produce 7,200 units of Product B.
2.Lewis Company's standard labor cost of producing one unit of Product DD is 3.6 hours at the rate of $13.2 per hour. During August, 43,000 hours of labor are incurred at a cost of $13.30 per hour to produce 11,800 units of Product DD.
3.Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 115,000 units per year. The total budgeted overhead at normal capacity is $747,500 comprised of $230,000 of variable costs and $517,500 of fixed costs. Byrd applies overhead on the basis of direct labor hours.
During the current year, Byrd produced 81,700 putters, worked 95,000 direct labor hours, and incurred variable overhead costs of $132,763 and fixed overhead costs of $479,050.
Recently Asked Questions
- What is "e-discovery" and how does it relate to gathering and managing evidence?
- Do you think a consultant would make a good expert witness in a case involving, say, shareholder disputes?
- Psychology QN. Hello, How do I define and discuss the differences between the 'formal' and 'post-formal' operational stages of cognitive development. Thank you