Prepare a schedule that computes the standard costs of direct labor in each production department. Standard direct-labor cost: Standard quantity Standard rate Standard cost per guitar Actual output in July Total standard cost of direct labor in July DIRECT LABOR Construction Department hour per hour per guitar guitars Finishing Department hour per hour per guitar guitars
Prepare a schedule that computes the standard costs of direct labor in each production department. Standard direct-labor cost: Standard quantity Standard rate Standard cost per guitar Actual output in July Total standard cost of direct labor in July DIRECT LABOR Construction Department hour per hour per guitar guitars Finishing Department hour per hour per guitar guitars
Prepare a schedule that computes the standard costs of direct labor in each production department. Standard direct-labor cost: Standard quantity Standard rate Standard cost per guitar Actual output in July Total standard cost of direct labor in July DIRECT LABOR Construction Department hour per hour per guitar guitars Finishing Department hour per hour per guitar guitars
1. Prepare a schedule that computes the standard costs of direct labor in each production department.
Transcribed Image Text:Prepare a schedule that computes the standard costs of direct labor in each production department.
**DIRECT LABOR**
| | Construction Department | Finishing Department |
|----------------------------------|-------------------------|--------------------------|
| Standard direct-labor cost: | | |
| **Standard quantity** | _[space]_ | hour | _[space]_ | hour |
| **Standard rate** | _[space]_ | per hour | _[space]_ | per hour |
| **Standard cost per guitar** | _[space]_ | per guitar | _[space]_ | per guitar |
| **Actual output in July** | _[space]_ | guitars | _[space]_ | guitars |
| **Total standard cost of direct labor in July** | _[blank]_ | _[blank]_ |
This table is designed to calculate and organize the standard costs associated with direct labor involved in the Construction and Finishing Departments. Key components such as standard quantity, rate, cost per guitar, and actual output in July are laid out for computational purposes.
Transcribed Image Text:### Springsteen Company Guitar Manufacturing Process
Springsteen Company manufactures guitars using a standard, job-order cost-accounting system. The process involves two primary production departments:
1. **Construction Department**: Here, wooden guitars are constructed by skilled craftsmen and coated with layers of lacquer.
2. **Finishing Department**: The guitars move to this department where the bridge and strings are attached. They are then tuned and inspected.
#### Production Process Diagram
- **Construction Department**: (Basic guitar built from veneered wood.)
- Transfers the unfinished product to the next stage.
- **Finishing Department**: (Bridge and strings attached; guitar tuned and inspected.)
- Completes the final assembly and quality check.
### Materials and Labor
- Each finished guitar uses seven pounds of veneered wood, with an additional pound generally wasted during production.
- The veneered wood costs $12 per pound.
- Other necessary parts, such as the bridge and strings, have a fixed price of $15 per guitar.
#### Labor Standards
- **Construction Department**:
- 6 hours of direct labor per guitar at $20 per hour.
- **Finishing Department**:
- 3 hours of direct labor per guitar at $15 per hour.
### Production Details for July
1. No beginning or ending work-in-process inventories.
2. No initial finished-goods inventory.
3. Produced 576 guitars; sold 376 at $400 each.
4. Purchased 6,950 pounds of veneered wood at $12.50 per pound.
5. Used 5,450 pounds of wood in July.
6. Bought parts to complete 676 guitars for $10,140.
7. Construction Department used 3,325 direct-labor hours; total labor cost was $63,175.
8. Finishing Department used 1,798 direct-labor hours; total labor cost was $28,768.
9. No direct-material variances in the Finishing Department.
Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.
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![Prepare a schedule that computes the standard costs of direct labor in each production department.
**DIRECT LABOR**
| | Construction Department | Finishing Department |
|----------------------------------|-------------------------|--------------------------|
| Standard direct-labor cost: | | |
| **Standard quantity** | _[space]_ | hour | _[space]_ | hour |
| **Standard rate** | _[space]_ | per hour | _[space]_ | per hour |
| **Standard cost per guitar** | _[space]_ | per guitar | _[space]_ | per guitar |
| **Actual output in July** | _[space]_ | guitars | _[space]_ | guitars |
| **Total standard cost of direct labor in July** | _[blank]_ | _[blank]_ |
This table is designed to calculate and organize the standard costs associated with direct labor involved in the Construction and Finishing Departments. Key components such as standard quantity, rate, cost per guitar, and actual output in July are laid out for computational purposes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87f551d-3fc5-4766-9e3a-b14ac4833b45%2F07b92197-e1c6-47a5-b973-cc3e4be0a3bf%2Fwsnyz7_processed.png&w=3840&q=75)
