Beta Company uses a standard cost accounting system.In 2014, 45,000 units
were produced. Each unit took several pounds of direct materialsand two standard hours
of direct labor at a standard hourly rate of $12.00. Normalcapacity was 86,000 direct labor
hours. During the year, 200,000 pounds of raw materials werepurchased at $1.00 per
pound. All materials purchased were used during the year.
Instructions
(a) If the materials price variance was $10,000 unfavorable, whatwas the standard materials
price per pound?
(b) If the materials quantity variance was $23,750 favorable, whatwas the standard materials
quantity per unit?
(c) What were the standard hours allowed for the unitsproduced?
(d) If the labor quantity variance was $10,080 unfavorable, whatwere the actual direct
labor hours worked?
(e) If the labor price variance was $18,168 favorable, what was theactual rate per hour?
(f) If total budgeted manufacturing overhead was $713,800 at normalcapacity, what was
the predetermined overhead rate per direct labor hour?
(g) What was the standard cost per unit of product?
(h) How much overhead was applied to production during theyear?
(i) Using selected answers above, what were the total costsassigned to work in process?
Beta Company uses a standard cost accounting system.In 2014, 45,000 units
were produced. Each unit took several pounds of direct materialsand two standard hours
of direct labor at a standard hourly rate of $12.00. Normalcapacity was 86,000 direct labor
hours. During the year, 200,000 pounds of raw materials werepurchased at $1.00 per
pound. All materials purchased were used during the year.
Instructions
(a) If the materials price variance was $10,000 unfavorable, whatwas the standard materials
price per pound?
(b) If the materials quantity variance was $23,750 favorable, whatwas the standard materials
quantity per unit?
(c) What were the standard hours allowed for the unitsproduced?
(d) If the labor quantity variance was $10,080 unfavorable, whatwere the actual direct
labor hours worked?
(e) If the labor price variance was $18,168 favorable, what was theactual rate per hour?
(f) If total budgeted manufacturing overhead was $713,800 at normalcapacity, what was
the predetermined overhead rate per direct labor hour?
(g) What was the standard cost per unit of product?
(h) How much overhead was applied to production during theyear?
(i) Using selected answers above, what were the total costsassigned to work in process?
