Antuatica uses a standard cost system for materials and labor in producing small fishing boats. Production...

Antuatica uses a standard cost system for materials and labor in producing small fishing boats. Production requires fiberglass, paint and a purchased trim package as well as direct as follows:


2,000 pounds of fiberglass @ $1.80 per pound	$3,600
6 quarts of gel coat paint @ $15 per quart	90
1 trim package	200
40 hours of labor @ $25 per hour	1,000
Standard cost for DM and DL	$4,890

The following actual data related to the production of 600 boats was recorded in July

Materials Purchased on Account

Fiberglass – 2,100,000 pounds @$1.83 per pound

Paint – 1,000 gallons @$55.50 per gallon

Trim Packages – 640 @ $205 per package

Materials Used

Fiberglass – 1,380,000 pounds

Paint – 924 gallons

Trim packages – 608

Direct Labor Used

23,850 hours @ $23.50 per hour

Determine the direct labor price and efficiency variances
Prepare the direct labor journal entries

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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