Assume the following (quantity of materials purchased = quantity of materials used): Standards: Material price $4 per pound Labor hours 2 hours per unit Labor rate $11 pr hour Variances: Material quantity $400 U Material price $300 F Labor efficiency $1,100 F Actual results: Material price $3.80 per pound Labor hours 1,500 hours $12 per hour Labor rate What is the total standard quantity of materials allowed for the actual level of output? A. 1,200 pounds B. 1,400 pounds C. 1,800 pounds D. 2,200 pounds E. None of the above.
Assume the following (quantity of materials purchased = quantity of materials used): Standards: Material price $4 per pound Labor hours 2 hours per unit Labor rate $11 pr hour Variances: Material quantity $400 U Material price $300 F Labor efficiency $1,100 F Actual results: Material price $3.80 per pound Labor hours 1,500 hours $12 per hour Labor rate What is the total standard quantity of materials allowed for the actual level of output? A. 1,200 pounds B. 1,400 pounds C. 1,800 pounds D. 2,200 pounds E. None of the above.
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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Question

Transcribed Image Text:Assume the following (quantity of materials purchased = quantity of
materials used):
Standards:
Material price
$4 per pound
Labor hours
2 hours per unit
Labor rate
$11 pr hour
Variances:
Material quantity
$400 U
Material price
$300 F
Labor efficiency
$1,100 F
Actual results:
Material price
$3.80 per pound
Labor hours
1,500 hours
$12 per hour
Labor rate
What is the total standard quantity of materials allowed for the actual
level of output?
A. 1,200 pounds
B. 1,400 pounds
C. 1,800 pounds
D. 2,200 pounds
E. None of the above.
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