Standard Costs Labor Materials Items per unit of product 3.00 hrs 5.00 Rate Per Item $ 30.00
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Question:
Standard Costs | |||||||||||||
Labor | Materials | ||||||||||||
Items per unit of product | 3.00 | hrs | 5.00 | ||||||||||
Rate Per Item | $ 30.00 | $ 60.00 | |||||||||||
Variable Cost Per Unit | $ 90.00 | $ 300.00 | |||||||||||
During the period, the company produces 1,400 units. The company attempted a new process asking | |||||||||||||
employees to spend extra time to reduce material waste. The employees spent 3.5 hours per unit but | |||||||||||||
did reduce the materials used to 4.8 per unit. Materials purchase cost and hourly wage were at standard cost. | |||||||||||||
1. What was the total cost of production? Show your work. | |||||||||||||
2. What was the total savings or cost compared to standard cost for labor, materials and in total? | |||||||||||||
Show on a per unit and total dollar basis. Show your work. |
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date: