Question

You have been given the following information about the production of Usher Co., and are asked...

You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations.

 Standard Cost Card Direct materials (9 pounds at \$5 per pound) \$45.00 Direct labor (0.80 hours at \$10) 8.00 Variable overhead (0.80 hours at \$5 per hour) 4.00 Fixed overhead (0.80 hours at \$7 per hour) 5.60 \$62.60

The following is a variance report for the most recent period of operations.

 Variances Costs Total Standard Cost Price Quantity Direct materials \$410,400 \$8,398 F \$9,500 U Direct labor 72,960 3,968 U 6,400 U

How many units were produced during the period?

 Number of units

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How many pounds of raw materials were purchased and used during the period?

 Raw material pounds

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What was the actual cost per pound of raw materials? (Round answer to 2 decimal places, e.g. 1.25.)

 Actual cost per pound of raw materials \$ /lb

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How many actual direct labor hours were worked during the period?

 Actual direct labor hours hours

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What was the actual rate paid per direct labor hour? (Round answer to 2 decimal places, e.g. 1.25.)

 Actual rate paid per direct labor hour \$ /hr

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1) Number of units = 410400/45 = 9120 Units

2) Material quantity variance = (SQ-AQ)SP

-9500 = (9120*9*5-5X)

5X = 410400+9500

X(actual qty) = 83980 Pounds

3) Material price variance = (SP-AP)AQ

8398 = (5*83980-83980X)

83980X = 411502

X(actual cost per pound) = 4.90

4) Labor quantity variance = (SH-AH)SR

-6400 = (9120*.80*10-10X)

10X = 79360

X(actual hour) = 7936 Hour

5) Labor rate variance = (SR-AR)AH

-3968 = (10*7936-7936X)

7936X = 83328

X(actual rate) = 10.50 per hour