New Jersey Valve Company manufactured 8,000 units during January of a control valve used by milk...

 

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New Jersey Valve Company manufactured 8,000 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following: Direct labor Direct material purchased Direct material used 33,100 hour at $14.10 per hour 25,000 pounds at $2.40 per pound. 23,500 pounds The control valve has the following standard prime costs: Direct material 3 pounds, at $2.30 per pound $ 6.90 Direct labor 4 hour at $14.50 per hour 58.00 Standard prime cost per unit $ 64.90 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,000 units. 2. For the month of January, compute the following variances. New Jersey Valve Company manufactured 8,000 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following: Direct labor Direct material purchased Direct material used 33,100 hour at $14.10 per hour 25,000 pounds at $2.40 per pound. 23,500 pounds The control valve has the following standard prime costs: Direct material 3 pounds, at $2.30 per pound $ 6.90 Direct labor 4 hour at $14.50 per hour 58.00 Standard prime cost per unit $ 64.90 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,000 units. 2. For the month of January, compute the following variances.

Answer rating: 100% (QA)

1 Schedule of Standard Production Costs for January Direct Material Standard quantity per unit 3 pounds Standard price per pound 230 Total standard ma... View the full answer