Diamond Company produces a single product. Thecompany has set the following standards for materials andlabor:
Standard quantity or
hours per unit Standard price
or rate Direct materials ?pounds per unit $?per pound Direct labor 4.0hours per unit $10per hour
During the past month, the company purchased11,000 pounds of direct materials at a cost of $30,250. All of thismaterial was used in the production of 1,700 units of product.Direct labor cost totaled $69,550 for the month. The followingvariances have been computed:
Materials quantity variance $ 2,360 U Total materials variance $ 160 U Labor efficiency variance $ 3,000 F
Required: 1. Fordirect materials:
a. Compute the standard price per pound ofmaterials. (Round yourintermediate calculations and final answer to 2 decimal places.Omit the "$" sign in your response.)
Standard price $per pound
b. Compute the standard quantity allowed formaterials for the month's production. (Round your intermediate calculations to 2decimal places.)
Standard quantity pounds
c. Compute the standard quantity of materialsallowed per unit of product. (Round your intermediate calculations to 2decimal places.)
Standard quantity pounds per unit
2. Fordirect labor:
a. Compute the actual direct labor hours for themonth.
Actual direct labor hours
b. Compute the labor rate variance. (Input the amount as a positive value. Leaveno cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2decimal places. Omit the "$" sign in yourresponse.)
Labor rate variance $ (Click to select)FUNone
Diamond Company produces a single product. Thecompany has set the following standards for materials andlabor:
| Standard quantity or hours per unit | Standard price or rate | |
| Direct materials | ?pounds per unit | $?per pound |
| Direct labor | 4.0hours per unit | $10per hour |
During the past month, the company purchased11,000 pounds of direct materials at a cost of $30,250. All of thismaterial was used in the production of 1,700 units of product.Direct labor cost totaled $69,550 for the month. The followingvariances have been computed: |
| Materials quantity variance | $ | 2,360 | U |
| Total materials variance | $ | 160 | U |
| Labor efficiency variance | $ | 3,000 | F |
| Required: | |
| 1. | Fordirect materials: |
| a. | Compute the standard price per pound ofmaterials. (Round yourintermediate calculations and final answer to 2 decimal places.Omit the "$" sign in your response.) |
| Standard price | $per pound |
| b. | Compute the standard quantity allowed formaterials for the month's production. (Round your intermediate calculations to 2decimal places.) |
| Standard quantity | pounds |
| c. | Compute the standard quantity of materialsallowed per unit of product. (Round your intermediate calculations to 2decimal places.) |
| Standard quantity | pounds per unit |
| 2. | Fordirect labor: |
| a. | Compute the actual direct labor hours for themonth. |
| Actual direct labor hours |
| b. | Compute the labor rate variance. (Input the amount as a positive value. Leaveno cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2decimal places. Omit the "$" sign in yourresponse.) |
| Labor rate variance | $ | (Click to select)FUNone |
Related questions
Diamond Company produces a single product. The company has setthe following standards for materials and labor: |
| Standardquantity or hours per unit | Standardprice or rate | |
| Directmaterials | ? pounds perunit | $? per pound |
| Direct labor | 4.0 hours perunit | $10 per hour |
During the past month, the company purchased 11,000 pounds ofdirect materials at a cost of $30,250. All of this material wasused in the production of 1,700 units of product. Direct labor costtotaled $69,550 for the month. The following variances have beencomputed: |
| Materials quantityvariance | $ | 2,360 | U |
| Total materialsvariance | $ | 160 | U |
| Labor efficiencyvariance | $ | 3,000 | F |
| Required: | |
| 1. | For direct materials: |
| a. | Compute the standard price per pound of materials.(Round your intermediate calculations and final answer to 2decimal places. Omit the "$" sign in your response.) |
| Standard price | $ per pound |
| b. | Compute the standard quantity allowed for materials for themonth's production. (Round your intermediate calculationsto 2 decimal places.) |
| Standardquantity | pounds |
| c. | Compute the standard quantity of materials allowed per unit ofproduct. (Round your intermediate calculations to 2 decimalplaces.) |
| Standardquantity | pounds perunit |
| 2. | For direct labor: |
| a. | Compute the actual direct labor hours for the month. |
| Actual direct laborhours |
| 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 in your response.) |
| Labor ratevariance | $ | (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 |
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
