Reference no: EM133061871
Questions -
Q1. Martha Compony started using a standard cost system several years ago. The standard costs for the prime costs of its single product follow:
Material: 10 kg @ $4.50/kg - $45.00
Labor: 6 hours @ $8.50/hr - $51.00
The information below were taken from the records for November:
Units completed - 5,800 units
Budgeted output - 6,000 units
Materials purchased - 60,000 kg
Total actual labor costs - $306,600
Actual hours of labor - 36,500 hours
Material usage variance - $2,250 unfavorable
Total material variance - $450 unfavorable
a. How much is the actual cost paid per kilogram?
b. How much is the labor efficiency variance
Q2. Mina Company is producing their bottle requirements. For each case of 24 eight-ounce bottles, the entity prescribed the following standard product mix: Material A @ 2.4 lb, $50/lbs; Material B @ 6 lb, $22/lbs and Material C @ 1.6 lbs, $15/lb.
During the month of August, 25,000 cases were produced from an input of:
|
Material
|
Pounds
|
Cost Per Pound
|
|
A
|
63,700
|
$49
|
|
B
|
125,200
|
20.50
|
|
C
|
48,100
|
16
|
a. How much is the materials mix variance?
b. How much is the materials yield variance?