Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, has the following standard cost per unit: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Standard Price or Hours Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour 2.20 ounces 0.60 hours 0.60 hours Standard Cost $ 50.60 8.40 1.50 $ 60.50 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $259,800. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory. c. The company employs 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,200. e. During November, the company produced 4,000 units of Fludex.

Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, has the following standard cost per unit: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Standard Price or Hours Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour 2.20 ounces 0.60 hours 0.60 hours Standard Cost $ 50.60 8.40 1.50 $ 60.50 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $259,800. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory. c. The company employs 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,200. e. During November, the company produced 4,000 units of Fludex.

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Description: Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, has the followingstandard cost per unit:Direct materialsDirect laborVariable manufacturing overheadTotal standard cost per unitStandard Q

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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