Pacific Coast Longboards produces wooden longboard skateboards. The standard cost of direct materials and direct labor is $95 per board. This includes 8 pounds of premium maple wood (direct materials) at a budgeted price of $5 per pound, and 5 hours of direct manufacturing labor at a budgeted rate of $11 per hour. Here are the production details for August: Units completed: 3,200 units Direct material purchases: 42,000 pounds Cost of direct material purchases: $218,400 Actual direct manufacturing labor hours: 15,800 hours Actual direct labor cost: $178,540 Direct materials efficiency variance: $750 U (unfavorable) No beginning inventories existed. Calculate the actual pounds of direct materials used in production in August.

Pacific Coast Longboards produces wooden longboard skateboards. The standard cost of direct materials and direct labor is $95 per board. This includes 8 pounds of premium maple wood (direct materials) at a budgeted price of $5 per pound, and 5 hours of direct manufacturing labor at a budgeted rate of $11 per hour. Here are the production details for August: Units completed: 3,200 units Direct material purchases: 42,000 pounds Cost of direct material purchases: $218,400 Actual direct manufacturing labor hours: 15,800 hours Actual direct labor cost: $178,540 Direct materials efficiency variance: $750 U (unfavorable) No beginning inventories existed. Calculate the actual pounds of direct materials used in production in August.

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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