6 P11-4A Kansas Company uses a standard cost accounting system. In 2014, the company produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000 direct labor hours. During the year, 117,000 pounds of raw materials were purchased at $0.92 per pound. All materials purchased were used during the year. Instructions (a) If the materials price variance was $3,510 favorable, what was the standard materials price per pound? (b) If the materials quantity variance was $4,750 unfavorable, what was the standard materials quantity per unit? 11 Standard Costs and Balanced Scorecard 57.20 per DLH Answer questions about variances. (LO 4, 5), AN (b) 4.0 pounds (c) What were the standard hours allowed for the units produced? (d) If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor hours worked? (e) If the labor price variance was $9,080 favorable, what was the actual rate per hour? (f) If total budgeted manufacturing overhead was $360,000 at normal capacity, what was the predetermined overhead rate? (g) What was the standard cost per unit of product? (h) How much overhead was applied to production during the year? (i) Using one or more answers above, what were the total costs assigned to work in process?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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P11-4A Kansas Company uses a standard cost accounting system. In 2014, the company
produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard
hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000
direct labor hours. During the year, 117,000 pounds of raw materials were purchased at
$0.92 per pound. All materials purchased were used during the year.
Instructions
(a) If the materials price variance was $3,510 favorable, what was the standard materials
price per pound?
(b) If the materials quantity variance was $4,750 unfavorable, what was the standard
materials quantity per unit?
11 Standard Costs and Balanced Scorecard
(f) $7.20 per DLH
Answer questions about
variances.
(LO 4, 5), AN
(b) 4.0 pounds
(c) What were the standard hours allowed for the units produced?
(d) If the labor quantity variance was $7,200 unfavorable, what were the actual direct
labor hours worked?
(e) If the labor price variance was $9,080 favorable, what was the actual rate per hour?
(f) If total budgeted manufacturing overhead was $360,000 at normal capacity, what was
the predetermined overhead rate?
(g) What was the standard cost per unit of product?
(h) How much overhead was applied to production during the year?
(i) Using one or more answers above, what were the total costs assigned to work in
process?
Transcribed Image Text:536 P11-4A Kansas Company uses a standard cost accounting system. In 2014, the company produced 28,000 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,000 direct labor hours. During the year, 117,000 pounds of raw materials were purchased at $0.92 per pound. All materials purchased were used during the year. Instructions (a) If the materials price variance was $3,510 favorable, what was the standard materials price per pound? (b) If the materials quantity variance was $4,750 unfavorable, what was the standard materials quantity per unit? 11 Standard Costs and Balanced Scorecard (f) $7.20 per DLH Answer questions about variances. (LO 4, 5), AN (b) 4.0 pounds (c) What were the standard hours allowed for the units produced? (d) If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor hours worked? (e) If the labor price variance was $9,080 favorable, what was the actual rate per hour? (f) If total budgeted manufacturing overhead was $360,000 at normal capacity, what was the predetermined overhead rate? (g) What was the standard cost per unit of product? (h) How much overhead was applied to production during the year? (i) Using one or more answers above, what were the total costs assigned to work in process?
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