ABC Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials.
Fantastic news! We've Found the answer you've been seeking!
Question:
ABC Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. The company uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows:
Direct materials: 1 pound per unit; $12 per pound
Direct labor: 4 hours per unit; $15 per hour
The company produced 5,000 units during the quarter. At the end of the quarter, an examination of the materials records showed that the company used 7,000 pounds of materials and actual total material costs were $98,000.
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date: