The normal capacity of the Malloy Company is 20,000 direct labor hours and 10,000 units per month.A
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The normal capacity of the Malloy Company is 20,000 direct labor hours and 10,000 units per month.A finished unit requires 15 pounds of materials at an estimated cost of $1.00 per pound.The estimated cost of labor is $12.00 per hour.It is estimated that overhead for a month will be $15,000.
During the month of June, 19,000 direct labor hours were worked at an average rate of $11.50 an hour.The number of units produced was 9,000, using all 132,000 pounds of material that were purchased at a cost of $1.05 per pound.
a.
Make a standard cost summary showing the standard unit cost.
b.
Calculate the material and labor variances.
Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
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