Machine Builders Incorporated adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (7 kilograms x $10 per kilogram) Labor: (3 hours x $22 per hour) $ 70 $ 66 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory In-process ending inventory-90% complete as to labor Units completed during the month none 900 units 7,100 units Budgeted output Purchases of materials, in kilograms (AQ) Total actual labor costs incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in July Beginning inventory of materials 8,600 units 33,000 $ 526,000 22,000 hours $ 2,900 unfavorable 1,300 kilograms The direct labor rate variance for July is: (Round your intermediate calculations to 2 decimal places.) 0 kilogram Multiple Choice О $27,620 favorable. $37,620 favorable. $42,020 unfavorable. $78,620 unfavorable.
Machine Builders Incorporated adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (7 kilograms x $10 per kilogram) Labor: (3 hours x $22 per hour) $ 70 $ 66 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory In-process ending inventory-90% complete as to labor Units completed during the month none 900 units 7,100 units Budgeted output Purchases of materials, in kilograms (AQ) Total actual labor costs incurred Direct labor hours worked (AQ) Materials purchase-price variance Increase in materials inventory in July Beginning inventory of materials 8,600 units 33,000 $ 526,000 22,000 hours $ 2,900 unfavorable 1,300 kilograms The direct labor rate variance for July is: (Round your intermediate calculations to 2 decimal places.) 0 kilogram Multiple Choice О $27,620 favorable. $37,620 favorable. $42,020 unfavorable. $78,620 unfavorable.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 1CMA: During December, Krause Chemical Company had the following selected data concerning the manufacture...
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