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Stratton Manufacturing Company uses a standard cost accounting system

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Question;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? (c) What were the standard hours allowed for the units produced?

 

Paper#37893 | Written in 18-Jul-2015

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