Grand River Manufacturing produces a metal flange that it sells to several local home building supply...
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Grand River Manufacturing produces a metal flange that it sells to several local home building supply retailers. The company has set standards as follows for materials and labour: Standard quantity or hours per unit Standard price or rate Standard cost per unit Direct Materials 1.5 kilograms Direct Labour ? hours $ 4 per kilogram $ 6 $? per hour $? During the past month, the company purchased 1,500 kilograms of direct materials at a cost of $6,375. All of this material was used in the production of 966 units of product using 425 hours of direct labour. Direct labour cost totalled $5,950 for the month. The following variances have been computed: Labour rate variance Total labour variance $425 F $ 350 F Materials quantity variance $ 204 U Required: 1. Compute the following for direct labour. (Round "hours per unit" answer to 2 decimal places.) a. Standard rate per hour for labour. b. Standard quantity allowed for labour for the month's production. c. Standard quantity of labour allowed per unit of product. hrs. hr(s) per unit < Prev 10 of 10 Next > Required: 1. Compute the following for direct labour. (Round "hours per unit" answer to 2 decimal places.) a. Standard rate per hour for labour. b. Standard quantity allowed for labour for the month's production. hrs. c. Standard quantity of labour allowed per unit of product. hr(s) per unit 2. Compute the following for direct materials. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round your answers to 2 decimal places.) a. Actual direct materials cost per kilogram for the month. b. Materials price variance. Grand River Manufacturing produces a metal flange that it sells to several local home building supply retailers. The company has set standards as follows for materials and labour: Standard quantity or hours per unit Standard price or rate Standard cost per unit Direct Materials 1.5 kilograms Direct Labour ? hours $ 4 per kilogram $ 6 $? per hour $? During the past month, the company purchased 1,500 kilograms of direct materials at a cost of $6,375. All of this material was used in the production of 966 units of product using 425 hours of direct labour. Direct labour cost totalled $5,950 for the month. The following variances have been computed: Labour rate variance Total labour variance $425 F $ 350 F Materials quantity variance $ 204 U Required: 1. Compute the following for direct labour. (Round "hours per unit" answer to 2 decimal places.) a. Standard rate per hour for labour. b. Standard quantity allowed for labour for the month's production. c. Standard quantity of labour allowed per unit of product. hrs. hr(s) per unit < Prev 10 of 10 Next > Required: 1. Compute the following for direct labour. (Round "hours per unit" answer to 2 decimal places.) a. Standard rate per hour for labour. b. Standard quantity allowed for labour for the month's production. hrs. c. Standard quantity of labour allowed per unit of product. hr(s) per unit 2. Compute the following for direct materials. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round your answers to 2 decimal places.) a. Actual direct materials cost per kilogram for the month. b. Materials price variance.
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Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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