On May 1 2013 Bovar Company began the manufacture of
On May 1, 2013, Bovar Company began the manufacture of a new Internet paging device known as Dandy. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit of Dandy are as follows:
Actual production in May was 4,000 units of Dandy, and actual sales in May were 2,500 units. The amount shown for direct materials price variance applies to materials purchased during May. There was no beginning inventory of materials on May 1, 2013.
REQUIRED
Compute each of the following items for Bovar for the month of May. Show your computations.
1. Standard direct manufacturing labour-hours (DMLH) allowed for actual output achieved.
2. Actual direct manufacturing labour-hours (DMLH) worked.
3. Actual direct manufacturing labour wage rate.
4. Standard quantity of direct materials allowed (in kg).
5. Actual quantity of direct materials used (in kg).
6. Actual quantity of direct materials purchased (in kg).
7. Actual direct materials price per kg.
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