Porter Manufacturing Company uses a standard cost accounting system. In 2011, the company produced 20,000 units. Each unit took several pounds of direct materials and 3 standard hours of direct labor at a standard hourly rate of $10. Normal capacity was 50,000 direct labor hours. During the year, 53,554 pounds of raw materials were purchased at $1.4 per pound. All materials purchased were used during the year. If the direct labor quantity variance was $4,300 unfavorable, what were the direct labor hours actually worked? Selected Answer: 59,570 Correct Answer: 60,430.00 ± 2
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
What am I doing wrong?
I'm doing it like this:
4300 = 10 ( (3*20,000) - actual hrs)
430 = 60,000 - actual hrs
59570 = actual hrs
but it comes out wrong
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Porter Manufacturing Company uses a standard cost accounting system. In 2011, the company produced 20,000 units. Each unit took several pounds of direct materials and 3 standard hours of direct labor at a standard hourly rate of $10. Normal capacity was 50,000 direct labor hours. During the year, 53,554 pounds of raw materials were purchased at $1.4 per pound. All materials purchased were used during the year. If the direct labor quantity variance was $4,300 unfavorable, what were the direct labor hours actually worked? |
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