Targaryen Statuary is known for its dragon statues. The following is data from the standard cost system for its best-selling product, The Balerion.
Inputs
Standard quantity or hours (1)
Standard price or rate (2)
Standard cost (1) x (2)
Direct materials
6 pounds
$3 / pound
$ 18.00
Direct labor
0.8 hours
$ 15 / hour
$ 12.00
Variable MOH
0.8 hours
$ 3 / hour
$ 2.40
Total standard cost / unit
$ 32.40
Total
Variances Reported
Standard Cost*
Price or Rate
Quantity or efficiency
Direct Materials
$ 405,000
$ 6,900 F
$ 9,000 U
Direct Labor
$ 270,000
$ 14,550 U
$ 21,000 U
Variable MOH
$ 54,000
$ 1,300 F
$ ? U
* Applied to WIP during the period
The company applies overhead based on direct labor hours. All materials purchased during the period were used in production. WIP inventories are insignificant and can be ignored.
Answer the following questions (3 points each)
A. How many units were produced last period? 22,500 units
B. How many pounds of direct material were purchased and used in production? 135,000 pounds
C. What was the actual cost/ pound of material? (Round to 2 decimal places) $2.95 per pound
D. How many actual direct labor hours were worked in the period? 19,400 hours
E. What was the actual rate paid per direct-labor hour? (Round to 2 decimal places) $15.75 per hour
F. How much actual variable manufacturing overhead cost was incurred in the period? $56,900