Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Sandy Inc. produces and sells sand by the bag and uses a standard (budgeted) cost system to collect costs related to production. The following information

 Sandy Inc. produces and sells sand by the bag and uses a standard (budgeted) cost

system to collect costs related to production. The following information relates to Sandy's operations

for last month:

1. Number of bags of sand sold......................................... 120,000

2. Standard price of direct material (per pound) ..................... $0.90

3.Standard direct labor rate per hour ........................................ $14.50

4. Actual quantity of direct materials purchased (in pounds)...........???

5. Standard quantity of direct materials per bag (in pounds) ...........1.4

6. Actual quantity of direct materials used ......................................???

7. Standard quantity of direct labor per bag (in hours) ...................???

8. Number of bags produced ....................................................144,000

9. Actual price paid for direct materials (per pound) .................... $0.85

10. Actual direct labor rate per hour.................................................???

11. Actual quantity of direct labor (in hours)................................12,500

12. Labor rate variance..............................................................$6,250U

13. Materials quantity variance .................................................$7,310F

14. Materials price variance ..................................................... $1,400F

15. Labor efficiency variance ...................................................$27,550F

Required:

Compute the unknown quantities above. (Numbers 4, 6, 7, and 10.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Analyzing Sandy Incs Production Costs Given Information Sales 120000 bags Standard price of direct material 090lb Standard direct labor rate 1450hour ... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

9781439044612, 1439044619, 978-1111626822

More Books

Students also viewed these Accounting questions