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 40,800 hr. at $14.50 per hr. 24,000 lb. at $2.30 per lb. 23,100 lb. The control valve has the following standard prime costs: 3 lb. at $2.20 per lb. $ 6.60 Direct material Direct labor 5 hr. at $15.00 per hr. 75.00 $81.60 Standard prime cost per unit 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 40,800 hr. at $14.50 per hr. 24,000 lb. at $2.30 per lb. 23,100 lb. The control valve has the following standard prime costs: 3 lb. at $2.20 per lb. $ 6.60 Direct material Direct labor 5 hr. at $15.00 per hr. 75.00 $81.60 Standard prime cost per unit 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.

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1 Schedule of standard production cost Standard Cost Direct material 800066 52800 Dir... View the full answer