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If the materials price variance was $2,620 favorable, what was the standard materials price per pound

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Stratton Manufacturing Company uses a standard cost accounting system. In 2011, the company produced 28,000 units. Each unit took several pounds of direct materials and 11/2 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000 direct labor hours. During the year, 131,000 pounds of raw materials were purchased at $0.92 per pound. All materials purchased were used during the year.;Answer questions about variances.;(SO 4, 5);Instructions;(a);If the materials price variance was $2,620 favorable, what was the standard materials price per pound?;(b);If the materials quantity variance was $4,700 unfavorable, what was the standard materials quantity per unit?;4.5 pounds;(c);What were the standard hours allowed for the units produced?

 

Paper#24067 | Written in 18-Jul-2015

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