Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) (b) Your answer is correct. (c) Standard materials price per pound $ eTextbook and Media Your answer is correct. (d) If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? Standard materials quantity per unit eTextbook and Media Your answer is correct. What were the standard hours allowed for the units produced? Standard hours allowed eTextbook and Media 45,280 hours Actual hours worked 0.95 If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked? hours 4 pounds Attempts: 1 of 5 used Attempts: 4 of 5 used Attempts: 1 of 5 used
Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) (b) Your answer is correct. (c) Standard materials price per pound $ eTextbook and Media Your answer is correct. (d) If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? Standard materials quantity per unit eTextbook and Media Your answer is correct. What were the standard hours allowed for the units produced? Standard hours allowed eTextbook and Media 45,280 hours Actual hours worked 0.95 If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked? hours 4 pounds Attempts: 1 of 5 used Attempts: 4 of 5 used Attempts: 1 of 5 used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of
direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor
hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used
during the year.
(a)
If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal
places, e.g. 2.75.)
(b)
Your answer is correct.
Standard materials price per pound $
(c)
eTextbook and Media
Your answer is correct.
If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit?
Standard materials quantity per unit
(d)
eTextbook and Media
Your answer is correct.
What were the standard hours allowed for the units produced?
Standard hours allowed
eTextbook and Media
45,280 hours
Actual hours worked
0.95
If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked?
hours
4 pounds
Attempts: 1 of 5 used
Attempts: 4 of 5 used
Attempts: 1 of 5 used
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