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ACCT 386 - Week 6 - Homework - Question 6

ACCT 386 - Week 6 - Homework - Question 6
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ACCT 386 - Week 6 - Homework - Question 6

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Question 6

Topline Surf Boards manufactures a single product. The standard cost of one unit of this product is as follows:

 

 

 

  Direct materials: 5 feet at $0.90 per foot

$

4.50  

  Direct labor: 1 hour at $5.20 per hour

 

5.20  

  Variable manufacturing overhead: 1 hour at $2.70 per hour

 

2.70  

 



  Total standard variable cost per unit

$

12.40  

 






During October, 5,900 units were produced. Selected data relating to the month’s production follow:

 

 

 

 

  Material purchased: 65,000 feet at $0.85 per foot

$

55,250

 

  Material used in production: 38,200 feet

 

 

  Direct labor: ? hours at $ ? per hour

$

25,600

 

  Variable manufacturing overhead cost incurred

$

20,420

 

  Variable manufacturing overhead efficiency variance

$

1,350

  U


There was no beginning inventory of raw materials. The variable manufacturing overhead rate is based on direct labor-hours.