Ballona Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $201 per board. This includes 30 pounds of direct materials, at the budgeted price of $2 per pound, and 10 hours of direct manufacturing labor, at the budgeted rate of $14.10 per hour. Following are additional data for the month of July: Units completed Direct material purchases Cost of direct material purchases 5,200 units 180,000 pounds $468,000 Actual direct manufacturing labor-hours 43,000 hours Actual direct labor cost $623,500 Direct materials efficiency variance $1,400 F There were no beginning inventories. 1. Compute direct manufacturing labor variances for July. 2. Compute the actual pounds of direct materials used in production in July. 3. Calculate the actual price per pound of direct materials purchased. 4. Calculate the direct materials price variance.

Ballona Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $201 per board. This includes 30 pounds of direct materials, at the budgeted price of $2 per pound, and 10 hours of direct manufacturing labor, at the budgeted rate of $14.10 per hour. Following are additional data for the month of July: Units completed Direct material purchases Cost of direct material purchases 5,200 units 180,000 pounds $468,000 Actual direct manufacturing labor-hours 43,000 hours Actual direct labor cost $623,500 Direct materials efficiency variance $1,400 F There were no beginning inventories. 1. Compute direct manufacturing labor variances for July. 2. Compute the actual pounds of direct materials used in production in July. 3. Calculate the actual price per pound of direct materials purchased. 4. Calculate the direct materials price variance.

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 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...

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