Question

We are analyzing 2 products – product X and product Y. Product X requires 3 Part As and 4 Part B’s. Product Y requires 2 Part A’s and 3 Part B’s. The standard cost for Part A is $12 per unit. The standard cost for Part B is $24 per unit. During this month, the company purchased 50,000 units of Part A for $587,500 (there was no beginning balance). During this month, the company purchased 100,000 units of Part B for $2,500,000 (there was no beginning balance). During the month the company produced 500 Xs and 1000 Ys. During the month the company used 3550 units of Part A and 4975 units of Part B. Factory payroll was $393,000 with 19,500 hours (this is actual - direct labor only). X uses 12 standard direct labor hours. Y uses 14 standard direct labor hours. Labor standard cost is $20 per hour. hint: for production of both X and Y Questions 1-25: Suggestion: Use a scratch paper to solve all the variances first, then answer the questions.

2.Use the information given in Problem I.

Use standard cost information for all calculations except as noted below.

Department	$Costs	Activity Cost Driver
Supplies	$22,000	Direct labor hours
Assembling	$17,000	Units of standard direct material (Parts)
Packaging	$15,000	Completed units

Questions 26-50: Suggestion: use the worksheet to complete the problem first, then answer the questions.

***PLEASE ANSWER part 2. How to do Supplies, Assembling, and Packaging for traditional method using Standard cost information?

Answer 1

Solution:

Working Notes: