Reference no: EM132547266
A partial standard cost card for the single product produced by Daffodil Company is given below:
Direct materials: 3 pounds @ $8 per pound
Direct labor: ? hours @ ? per hour
Last period the company produced 4,000 units of product. Cost and other data associated with this production are given below:
Direct materials purchased and used, at cost $103,320
Direct labor cost incurred (10,400 hours) .. $120,640
Materials price variance ............................. $2,520 Unfavorable
Labor efficiency variance ............................ $4,800 Unfavorable
Total labor variance ................................... $640 Unfavorable
Required:
Question a. Determine the number of pounds of direct materials purchased and used during the period.
Question b. Determine the materials quantity variance.
Question c. Determine the standard direct labor rate per direct labor hour.
Question d. Determine the standard hours allowed for the production of the period.