In: Accounting
) A partial standard cost card for the single product produced by Macentoch Company is given below:
Direct materials: 3 pounds @ $8 per pound
Direct labor: ? hours @ ? Per hour
Last period the company produced 4,000 units of product. Cost and other data associated with this production are given below:
Direct materials purchased and used, at cost |
$103,320 |
||
Direct labor cost incurred (10,400 hours) |
$120,640 |
||
Materials price variance |
$2,520 |
Unfavorable |
|
Labor efficiency variance |
$4,800 |
Unfavorable |
|
Total labor variance |
$640 |
Unfavorable |
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. Determine the number of pounds of direct materials purchased and used during the period.
b. Determine the materials quantity variance.
c. Determine the standard direct labor rate per direct labor hour.
d. Determine the standard hours allowed for the production of the period.