Standard
Quantity
Standard
Actual
Pottery Inc. Costs
(lbs and
hours)
Price (per
Quantity (lbs
lbs or hour) or hours)
Actual costs
Clay pots produced
1
36,000
36,000
Direct Materials (lbs)
2
$
2.5
75,000
$
170,000
Direct Labor (hours)
5
$
12.0
165,000
$
2,500,000
Total Direct Costs
$
2,670,000
Note: Quantity amounts are in lbs. for Direct Materials and hours for Direct Labor.