New Jersey Valve Company manufactured 7,900 units during January
of a control valve used by milk processors in its Camden plant.
Records indicated the following:
|
|
|
| Direct labor |
40,600 |
hr. at $14.20 per
hr. |
| Direct material purchased |
24,000 |
lb. at $2.10 per lb. |
| Direct material used |
26,800 |
lb. |
|
The control valve has the following standard prime costs:
|
|
|
|
|
|
| Direct material |
4 |
lb. at $2.00 per
lb. |
$ |
8.00 |
|
| Direct labor |
5 |
hr. at $14.80 per hr. |
|
74.00 |
|
| Standard prime cost
per unit |
$ |
82.00 |
|
|
Required:
Prepare a schedule of standard production costs for January,
based on actual production of 7,900 units.
For the month of January, compute the following variances.
|
|
|
NEW JERSEY VALVE COMPANY: CAMDEN PLANT |
|
Schedule of Standard Production Costs |
|
Based on 7,900 Units |
|
For the Month of January |
|
Standard
Costs |
| Direct
material |
|
| Direct
labor |
|
| Total standard production costs |
|
|
|
|
|
|
|
| a. |
Direct-material price variance |
|
|
| b. |
Direct-material quantity variance |
|
|
| c. |
Direct-material purchase price variance |
|
|
| d. |
Direct-labor rate variance |
|
|
| e. |
Direct-labor efficiency variance |
|
|