Topaz Company makes one product andhas set the following standards for materials and labor:
DirectMaterials Direct Labor Standard quantity or hours per unit ?pounds 2.50 hours Standard price or rate ? perpound $ 8.50 per hour Standard cost per unit ? $ 21.25
During the past month, the companypurchased 6,700 pounds of direct materials at a cost of $17,085.All of this material was used in the production of 1,300 units ofproduct. Direct labor cost totaled $24,750 for the month. Thefollowing variances have been computed:
Materials quantity variance $ 1,120 U Total materials spending variance $ 555 F Labor efficiency variance $ 4,250 F
Required:
1. Fordirect materials:
a. Compute the standard price per poundfor materials. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.)
Standard price $
b. Compute the standard quantityallowed for materials for the month%u2019s production. (Round your intermediatecalculation to 2 decimal places.)
Standard quantity pounds
c.
Compute the standard quantity ofmaterials allowed per unit of product. (Round your answer to 2 decimalplaces.)
Standard quantity pounds per unit
2. Fordirect labor:
a. Compute the actual direct labor cost per hour for the month.(Round your answerto 2 decimal places.)
Actual direct labor cost per hour
b. Compute the labor rate variance.(Do not roundintermediate calculations. Round your answer to the nearest dollar.Indicate the effect of variance by selecting "F" for favorable, "U"for unfavorable, and "None" for no effect (i.e., zero variance).Input all amounts as positive values. Leave no cells blank - becertain to enter "0" wherever required.)
Labor rate variance $
Topaz Company makes one product andhas set the following standards for materials and labor:
| DirectMaterials | Direct Labor | |||
| Standard quantity or hours per unit | ?pounds | 2.50 | hours | |
| Standard price or rate | ? perpound | $ | 8.50 | per hour |
| Standard cost per unit | ? | $ | 21.25 | |
During the past month, the companypurchased 6,700 pounds of direct materials at a cost of $17,085.All of this material was used in the production of 1,300 units ofproduct. Direct labor cost totaled $24,750 for the month. Thefollowing variances have been computed: |
| Materials quantity variance | $ | 1,120 | U |
| Total materials spending variance | $ | 555 | F |
| Labor efficiency variance | $ | 4,250 | F |
| Required: |
| 1. | Fordirect materials: |
| a. | Compute the standard price per poundfor materials. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) |
| Standard price | $ |
| b. | Compute the standard quantityallowed for materials for the month%u2019s production. (Round your intermediatecalculation to 2 decimal places.) |
| Standard quantity | pounds |
| c. | Compute the standard quantity ofmaterials allowed per unit of product. (Round your answer to 2 decimalplaces.) |
| Standard quantity | pounds per unit |
| 2. | Fordirect labor: |
| a. | Compute the actual direct labor cost per hour for the month.(Round your answerto 2 decimal places.) |
| Actual direct labor cost per hour |
| b. | Compute the labor rate variance.(Do not roundintermediate calculations. Round your answer to the nearest dollar.Indicate the effect of variance by selecting "F" for favorable, "U"for unfavorable, and "None" for no effect (i.e., zero variance).Input all amounts as positive values. Leave no cells blank - becertain to enter "0" wherever required.) |
| Labor rate variance | $ |
Related questions
Topaz Company makes one product andhas set the following standards for materials and labor:
| DirectMaterials | Direct Labor | |||
| Standard quantity or hours per unit | ?pounds | 2.50 | hours | |
| Standard price or rate | ? perpound | $ | 8.50 | per hour |
| Standard cost per unit | ? | $ | 21.25 | |
During the past month, the companypurchased 6,700 pounds of direct materials at a cost of $17,085.All of this material was used in the production of 1,300 units ofproduct. Direct labor cost totaled $24,750 for the month. Thefollowing variances have been computed: |
| Materials quantity variance | $ | 1,120 | U |
| Total materials spending variance | $ | 555 | F |
| Labor efficiency variance | $ | 4,250 | F |
| Required: |
| 1. | Fordirect materials: |
| a. | Compute the standard price per poundfor materials. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) |
| Standard price | $ |
| b. | Compute the standard quantityallowed for materials for the month%u2019s production. (Round your intermediatecalculation to 2 decimal places.) |
| Standard quantity | pounds |
| c. | Compute the standard quantity ofmaterials allowed per unit of product. (Round your answer to 2 decimalplaces.) |
| Standard quantity | pounds per unit |
| 2. | Fordirect labor: |
| a. | Compute the actual direct labor cost per hour for the month.(Round your answerto 2 decimal places.) |
| Actual direct labor cost per hour |
| b. | Compute the labor rate variance.(Do not roundintermediate calculations. Round your answer to the nearest dollar.Indicate the effect of variance by selecting "F" for favorable, "U"for unfavorable, and "None" for no effect (i.e., zero variance).Input all amounts as positive values. Leave no cells blank - becertain to enter "0" wherever required.) |
| Labor rate variance | $ |
topaz company makes one product and has set the followingstandards for materials and labor:
| direct materials | direct labor | |
| standard quantity or hours per unit | ? pounds | 2.5 hours |
| standard price or rate | ? per pound | $9.00 per hour |
| standard cost per unit | ? | $22.50 |
during the past month, the company purchased 6,000 pounds ofdirect materials at a cost of $16,500. all of this material wasused in the production of 1,400 units of product. direct labor costtotaled $28,500 for the month. the following variances have beencomputed:
| materials quantity variance | $1,200 U |
| total materials spending variance | $300 F |
| labor efficiency variance | $4,500 F |
1. for direct materials:
a. compute the standard price per pound for materials
b. compute the standard quantity allowed for materials for themonth's production
c. compute the standard quantity of materials allowed per unitof product
topaz company makes one product and has set the followingstandards for materials and labor:
| direct materials | direct labor | |
| standard quantity or hours per unit | ? pounds | 2.5 hours |
| standard price or rate | ? per pound | $9.00 per hour |
| standard cost per unit | ? | $22.50 |
during the past month, the company purchased 6,000 pounds ofdirect materials at a cost of $16,500. all of this material wasused in the production of 1,400 units of product. direct labor costtotaled $28,500 for the month. the following variances have beencomputed:
| materials quantity variance | $1,200 U |
| total materials spending variance | $300 F |
| labor efficiency variance | $4,500 F |
for direct labor:
a. compute the actual direct labor cost per hour for themonth
b. compute the labor rate variance
