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New Jersey Valve Company manufactured 8,600 units during January of a control valve used by milk processors in its Camden p Records indicated the following: Direct labor Direct material purchased Direct material used 43,800 hr. at $15.30 per hr. 31,000 lb. at $3.90 per lb. 25,600 lb. The control valve has the following standard prime costs: Direct material 3 lb. at $3.80 per lb. Direct labor 5 hr. at $15.70 per hr. Standard prime cost per unit $11.40 78.50 $89.90 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,600 units. 2. For the month of January, compute the following variances.

New Jersey Valve Company manufactured 8,600 units during January of a control valve used by milk processors in its Camden p Records indicated the following: Direct labor Direct material purchased Direct material used 43,800 hr. at $15.30 per hr. 31,000 lb. at $3.90 per lb. 25,600 lb. The control valve has the following standard prime costs: Direct material 3 lb. at $3.80 per lb. Direct labor 5 hr. at $15.70 per hr. Standard prime cost per unit $11.40 78.50 $89.90 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,600 units. 2. For the month of January, compute the following variances.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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New Jersey Valve Company manufactured 8,600 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 43,800 hr. at $15.30 per hr. 31,000 lb. at $3.90 per lb. 25,600 lb. The control valve has the following standard prime costs: Direct material 3 lb. at $3.80 per lb. Direct labor 5 hr. at $15.70 per hr. Standard prime cost per unit $11.40 78.50 $89.90 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,600 units. 2. For the month of January, compute the following variances.
Transcribed Image Text:New Jersey Valve Company manufactured 8,600 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 43,800 hr. at $15.30 per hr. 31,000 lb. at $3.90 per lb. 25,600 lb. The control valve has the following standard prime costs: Direct material 3 lb. at $3.80 per lb. Direct labor 5 hr. at $15.70 per hr. Standard prime cost per unit $11.40 78.50 $89.90 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,600 units. 2. For the month of January, compute the following variances.
Required 1 Required 2 Prepare a schedule of standard production costs for January, based on actual production of 8,600 units. NEW JERSEY VALVE COMPANY: CAMDEN PLANT Schedule of Standard Production Costs Based on 8,600 Units For the Month of January Direct material Direct labor Total standard production costs Required 1 Required 2 Standard Costs 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 (i.e., zero variance).) Direct-material price variance Direct-material quantity variance Direct-material purchase price variance Direct-labor rate variance Direct-labor efficiency variance
Transcribed Image Text:Required 1 Required 2 Prepare a schedule of standard production costs for January, based on actual production of 8,600 units. NEW JERSEY VALVE COMPANY: CAMDEN PLANT Schedule of Standard Production Costs Based on 8,600 Units For the Month of January Direct material Direct labor Total standard production costs Required 1 Required 2 Standard Costs 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 (i.e., zero variance).) Direct-material price variance Direct-material quantity variance Direct-material purchase price variance Direct-labor rate variance Direct-labor efficiency variance
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