Diamond Company produces a single product. The company has set thefollowing standards for materials and labor:
Standard quantity or
hours per unit Standard price
or rate Direct materials ? pounds per unit $? per pound Direct labor 3.0 hours per unit $11 per hour
During the past month, the company purchased 8,200 pounds of directmaterials at a cost of $16,810. All of this material was used inthe production of 1,500 units of product. Direct labor cost totaled$51,920 for the month. The following variances have beencomputed:
Materials quantity variance $ 1,645 U Total materials variance $ 815 F Labor efficiency variance $ 1,100 F
Required: 1. For direct materials:
a. Compute the standard price per pound of materials. (Round yourintermediate calculations and final answer to 2 decimal places.Omit the "$" sign in your response.)
Standard price $ per pound
b. Compute the standard quantity allowed for materials for the month'sproduction. (Round yourintermediate calculations to 2 decimal places.)
Standard quantity pounds
c. Compute the standard quantity of materials allowed per unit ofproduct. (Round yourintermediate calculations to 2 decimal places.)
Standard quantity pounds per unit
2. For direct labor:
a. Compute the actual direct labor hours for the month.
Actual direct labor hours
b. Compute the labor rate variance. (Input the amount as apositive value. Leave no cells blank - be certain to enter "0"wherever required. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Round yourintermediate calculations to 2 decimal places. Omit the "$" sign inyour response.)
Labor rate variance $ (Click to select)FUNone
Diamond Company produces a single product. The company has set thefollowing standards for materials and labor: |
Standard quantity or hours per unit | Standard price or rate | |
Direct materials | ? pounds per unit | $? per pound |
Direct labor | 3.0 hours per unit | $11 per hour |
During the past month, the company purchased 8,200 pounds of directmaterials at a cost of $16,810. All of this material was used inthe production of 1,500 units of product. Direct labor cost totaled$51,920 for the month. The following variances have beencomputed: |
Materials quantity variance | $ | 1,645 | U |
Total materials variance | $ | 815 | F |
Labor efficiency variance | $ | 1,100 | F |
Required: | |
1. | For direct materials: |
a. | Compute the standard price per pound of materials. (Round yourintermediate calculations and final answer to 2 decimal places.Omit the "$" sign in your response.) |
Standard price | $ per pound |
b. | Compute the standard quantity allowed for materials for the month'sproduction. (Round yourintermediate calculations to 2 decimal places.) |
Standard quantity | pounds |
c. | Compute the standard quantity of materials allowed per unit ofproduct. (Round yourintermediate calculations to 2 decimal places.) |
Standard quantity | pounds per unit |
2. | For direct labor: |
a. | Compute the actual direct labor hours for the month. |
Actual direct labor hours |
b. | Compute the labor rate variance. (Input the amount as apositive value. Leave no cells blank - be certain to enter "0"wherever required. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Round yourintermediate calculations to 2 decimal places. Omit the "$" sign inyour response.) |
Labor rate variance | $ | (Click to select)FUNone |