Direct materials: 3.0 kilos at $8.50 per kilo Direct labor: 1.2 hours at $18.00 per hour Variable overhead: 1.2 hours at $5.00 per hour The company produced 5,200 units in May using 16,380 kilos of direct material and 6,500 direct labor hours. During the month, the company purchased 16,900 kilos of direct material at $8.75 per kilo. The actual direct labor rate was $18.50 per hour and the actual variable overhead rate was $4.80 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for May is: a. $7,650 U b. $7,650 F c. 6,630 U d. $8,075 F

Direct materials: 3.0 kilos at $8.50 per kilo Direct labor: 1.2 hours at $18.00 per hour Variable overhead: 1.2 hours at $5.00 per hour The company produced 5,200 units in May using 16,380 kilos of direct material and 6,500 direct labor hours. During the month, the company purchased 16,900 kilos of direct material at $8.75 per kilo. The actual direct labor rate was $18.50 per hour and the actual variable overhead rate was $4.80 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for May is: a. $7,650 U b. $7,650 F c. 6,630 U d. $8,075 F

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 10E: Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000...

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