New Jersey Valve Company manufactured 7,400 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following: Direct labor Direct material purchased Direct material used 45,300 hour at $15.40 per hour 32,000 pounds at $2.80 per pound 29,300 pounds The control valve has the following standard prime costs: Direct material Direct labor Standard prime cost per unit 4 pounds at $2.70 per pound 6 hour at $15.80 per hour $ 10.80 94.80 $105.60 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 7,400 units. 2. For the month of January, compute the following variances.

New Jersey Valve Company manufactured 7,400 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following: Direct labor Direct material purchased Direct material used 45,300 hour at $15.40 per hour 32,000 pounds at $2.80 per pound 29,300 pounds The control valve has the following standard prime costs: Direct material Direct labor Standard prime cost per unit 4 pounds at $2.70 per pound 6 hour at $15.80 per hour $ 10.80 94.80 $105.60 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 7,400 units. 2. For the month of January, compute the following variances.

Name: For the month of January, compute the following variances.Indicate the
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Description: For the month of January, compute the following variances.Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect a. Direct-material price varianceb. Direct-material quantity variancec

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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