Assume the following (quantity of materials purchased = quantity of materials used): Standards: • Material price = $5 per pound ⚫ Labor hours = 3 hours per unit Labor rate = $10 per hour Variances: • Material quantity = $500 U • Material price = $200 F ⚫ Labor efficiency = $900 F Actual results: . Material price = $4.80 per pound ⚫ Labor hours = 2,700 hours ⚫ Labor rate = $11 per hour What is the total standard quantity of materials allowed for the actual level of output?

Assume the following (quantity of materials purchased = quantity of materials used): Standards: • Material price = $5 per pound ⚫ Labor hours = 3 hours per unit Labor rate = $10 per hour Variances: • Material quantity = $500 U • Material price = $200 F ⚫ Labor efficiency = $900 F Actual results: . Material price = $4.80 per pound ⚫ Labor hours = 2,700 hours ⚫ Labor rate = $11 per hour What is the total standard quantity of materials allowed for the actual level of output?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...

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