17The following data of Pepper Pots Corp. relate to the production of 2,000 clay pots during July. Direct Materials (all materials purchased were used): Standard cost: $6.00 per kilogram of clay Total actual cost: $11,200 Standard cost allowed for units produced was $12,000 Materials efficiency variance was $240 unfavourable Direct Manufacturing Labour: Standard cost is 2 pots per hour at $24.00 per hour Actual cost per hour was $24.50 Actual labour was 972 hours What is the standard direct material amount per pot?Select one:a. 4.00 kilogramsb. 2.12 kilogramsc. 3.00 kilogramsd. 1.00 kilograme. 1.88 kilograms

Key Information:Standard cost of direct materials: $6.00 per kilogram of clay.Standard cost allowed…

Answered: 17 The following data of Pepper Pots…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 32BEB: During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine...

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The following data of Pepper Pots Corp. relate to the production of 2,000 clay pots during July.

Direct Materials (all materials purchased were used):

Standard cost: $6.00 per kilogram of clay
Total actual cost: $11,200
Standard cost allowed for units produced was $12,000
Materials efficiency variance was $240 unfavourable

Direct Manufacturing Labour:

Standard cost is 2 pots per hour at $24.00 per hour
Actual cost per hour was $24.50
Actual labour was 972 hours

What is the standard direct material amount per pot?

Select one:

a. 4.00 kilograms

b. 2.12 kilograms

c. 3.00 kilograms

d. 1.00 kilogram

e. 1.88 kilograms

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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