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Assume the following (quantity of materials purchased = quantity of materials used): Standards: • Material Price = $6 per pound ⚫ Labor Hours = 4 hours per unit ⚫ Labor Rate = $14 per hour Variances: ⚫ Material Quantity Variance = $600 Unfavorable (U) ⚫ Material Price Variance = $480 Favorable (F) Labor Efficiency Variance = $1,200 Favorable (F) Actual Results: • Material Price = $5.60 per pound Labor Hours = 2,400 hours ⚫ Labor Rate = $15 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 = $6 per pound ⚫ Labor Hours = 4 hours per unit ⚫ Labor Rate = $14 per hour Variances: ⚫ Material Quantity Variance = $600 Unfavorable (U) ⚫ Material Price Variance = $480 Favorable (F) Labor Efficiency Variance = $1,200 Favorable (F) Actual Results: • Material Price = $5.60 per pound Labor Hours = 2,400 hours ⚫ Labor Rate = $15 per hour What is the total standard quantity of materials allowed for the actual level of output?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following (quantity of materials purchased = quantity of materials used): Standards: • Material Price = $6 per pound ⚫ Labor Hours = 4 hours per unit ⚫ Labor Rate = $14 per hour Variances: ⚫ Material Quantity Variance = $600 Unfavorable (U) ⚫ Material Price Variance = $480 Favorable (F) Labor Efficiency Variance = $1,200 Favorable (F) Actual Results: • Material Price = $5.60 per pound Labor Hours = 2,400 hours ⚫ Labor Rate = $15 per hour What is the total standard quantity of materials allowed for the actual level of output?
Transcribed Image Text:Assume the following (quantity of materials purchased = quantity of materials used): Standards: • Material Price = $6 per pound ⚫ Labor Hours = 4 hours per unit ⚫ Labor Rate = $14 per hour Variances: ⚫ Material Quantity Variance = $600 Unfavorable (U) ⚫ Material Price Variance = $480 Favorable (F) Labor Efficiency Variance = $1,200 Favorable (F) Actual Results: • Material Price = $5.60 per pound Labor Hours = 2,400 hours ⚫ Labor Rate = $15 per hour What is the total standard quantity of materials allowed for the actual level of output?
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