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never [62]
3 years ago
10

Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of t

he current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 3,000 lbs. Actual unit price of direct materials $5.50 per lb. Units of finished product manufactured 1,400 units Standard direct materials per unit of finished product 2 lbs. Direct materials quantity variance—unfavorable $1,000 Direct materials price variance—unfavorable $1,500 Determine the standard direct materials cost per unit of finished product
Business
1 answer:
statuscvo [17]3 years ago
3 0

Answer:

The standard cost is $5 per lbs

each units uses 2 lbs, so the unit stadard cost is $10

Explanation:

Volume variance

(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: efficiency \: variance

std quantity                   2800.00  (1,400 units times 2 pounds per unit)

actual quantity           3000.00

std cost                                     ??

(2,800-3,000) \times standard \: cost = -1,000

difference                     -200.00

efficiency variance        $(1,000.00)

-200 x Std cost = -1,000

Standard cost = -1,000/-200 = 5

The standard cost is $5 per lbs

each units uses 2 lbs, so the unit stadard cost is $10

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arris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S
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Answer:

$12,500

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Absorption costing consider all the cost incurred in production either variable or fixed as production cost and all the operating costs as the period costs. It calculates the gross profit after deducting the cost of goods sold from the net sales and net income after deduction the operating costs from the gross profit.

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Direct labor                                      $61

Variable manufacturing overhead $7

Fixed manufacturing overhead      $15

($135,000/9,000)                          <u>           </u>

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Gross Profit                                                 $120,400

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Net Income                                                 <u>$12,500  </u>

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