Kansas Company uses a
standard cost accounting system. In 2014, the company
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.
(a) If the materials
price variance was $3,510 favorable, what was the standard materials price
per pound? (Round
answer to 2 decimal places, e.g. 2.75.)
|
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?
Using one or more answers above, what
were the total costs assigned to work in process?
TUTORIAL PREVIEW
a. Material price variance = (AQ X AP) – (AQ X SP) = 3,510 F
= AQ (AP – SP) = 3510 F
117,000 (AP – SP) = 3,510 F
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