Determine the standard cost per seal

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The Penny Worth Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.45 per pound for each seal. The standard cost for labor is 1.5 hours at $15.00 per hour. Standard overhead is $10.00 per unit. For the year 2018, expected production is 136,300 seals with fixed overhead of $136,300 and variable overhead of $9.00 per seal. During 2018, a total of 125,000 seals were produced. The company purchased 455,000 pounds of material for $1,160,250. Production required 405,700 pounds of material. The cost of direct labor incurred was $2,900,000 with an actual average wage rate of $15.25 per hour. Actual overhead for the year was $844,000.

Problem 1: Determine the standard cost per seal. (Round answer to 2 decimal places, e.g. 15.25.)

Problem 2: Calculate the material, labor, and overhead variances.

Reference no: EM132769821

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