Business
Business, 16.04.2021 20:40, damonsalvatoreisbae

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 2.40 ounces $27.00 per ounce $64.80
Direct labor 0.60 hours $12.00 per hour 7.20
Variable manufacturing overhead 0.60 hours $3.50 per hour 2.10
Total standard cost per unit $74.10

During November, the following activity was recorded related to the production of Fludex

a. Materials purchased, 13,000 ounces at a cost of $330,200
b. There was no beginning inventory of materials; however, at the end of the month, 2,850 ounces of material remained in ending inventory
c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average 160 hours at an average pay rate of $11.00 per hour
d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead during November totaled $6,000
e. During November, the company produced 4,200 units of Fludex.

Required
1. For direct materials:
a. Compute the price and quantity variances
b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?

2. For direct labor:
a. Compute the rate and efficiency variances
b. In the past, the 20 technicians employed in the production of Fludex consisted of 7 senior technicians and 13 assistants. Durin November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Woulc recommend that the new labor mix be continued?
3. Compute the variable overhead rate and efficiency variances

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 16:30, fatherbamboo
What factors excluding price affect demand
Answers: 2
image
Business, 22.06.2019 20:40, AliTop232
The largest elements of community corrections are
Answers: 1
image
Business, 23.06.2019 01:50, maddie7417
You are looking at a one-year loan of $16,500. the interest rate is quoted as 8.7 percent plus two points. a point on a loan is 1 percent (one percentage point) of the loan amount. quotes similar to this one are common with home mortgages. the interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.7 percent interest. what rate would you actually be paying here?
Answers: 3
image
Business, 23.06.2019 04:00, lilzaya510
Management training programs, mentoring programs, and coaching systems are examples of
Answers: 1
Do you know the correct answer?
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Flud...

Questions in other subjects:

Konu
Social Studies, 02.11.2019 02:31