During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $ 137,280 ($19.20 per hour) Direct material: $ 43,350 ($8.50 per pound) The standards for one unit of Danby Company’s product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.10 per hour Price, $8.20 per pound
During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows: Direct labor: $ 137,280 ($19.20 per hour) Direct material: $ 43,350 ($8.50 per pound) The standards for one unit of Danby Company’s product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.10 per hour Price, $8.20 per pound
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 6MC: What are some possible reasons for a material price variance? A. substandard material B. labor rate...
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During June, Danby Company’s material purchases amounted to 7,800 pounds at a price of $8.50 per pound. Actual costs incurred in the production of 1,600 units were as follows:
Direct labor: | $ | 137,280 | ($19.20 per hour) |
Direct material: | $ | 43,350 | ($8.50 per pound) |
The standards for one unit of Danby Company’s product are as follows:
Direct Labor: | Direct Material: |
Quantity, 4 hours per unit | Quantity, 3 pounds per unit |
Rate, $19.10 per hour | Price, $8.20 per pound |
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