Pacific Coast Kayaks manufactures plastic kayaks. The standard cost of direct materials and direct manufacturing labor is $225 per kayak. This includes 25 pounds of direct materials, at the budgeted price of $3 per pound, and 8 hours of direct manufacturing labor, at the budget rate of $18.75 per hour. The following data is for the month of August: ⚫ Units completed: 4,800 units ⚫ Direct material purchases: 180,000 pounds • • • Cost of direct material purchases: $612,000 Actual direct manufacturing labor hours: 39,000 hours Actual direct labor cost: $741,000 ⚫ Direct materials efficiency variance: $900 F ⚫ No beginning inventories Calculate the actual price per pound of direct materials purchased.

Pacific Coast Kayaks manufactures plastic kayaks. The standard cost of direct materials and direct manufacturing labor is $225 per kayak. This includes 25 pounds of direct materials, at the budgeted price of $3 per pound, and 8 hours of direct manufacturing labor, at the budget rate of $18.75 per hour. The following data is for the month of August: ⚫ Units completed: 4,800 units ⚫ Direct material purchases: 180,000 pounds • • • Cost of direct material purchases: $612,000 Actual direct manufacturing labor hours: 39,000 hours Actual direct labor cost: $741,000 ⚫ Direct materials efficiency variance: $900 F ⚫ No beginning inventories Calculate the actual price per pound of direct materials purchased.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

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