Container company manufactures recyclable soft-drink cans

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Reference no: EM131762099

Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.

Direct Labor: Direct Material:

Quantity, 0.29 hours Quantity, 8 kilograms

Rate, $14.50 per hour Price, $0.68 per kilogram

Actual material purchases amounted to 412,800 kilograms at $0.700 per kilogram. Actual costs incurred in the production of 48,000 units were as follows:

Direct labor: $228,096 for 15,360 hours
Direct material: $273,840 for 391,200 kilograms

Required:

Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "per kilogram" and "per hour" to 3 decimal places.)

Reference no: EM131762099

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