Integrity Company uses standard costing for each specialized product. The following information is available: Standards: Material- 3.0 feet per unit @ P42.00 per foot Labor- 2.5 hours per unit @ P75.00 per hour Actual: Production- 2,750 units produced during the month Material- 8,700 feet used; 9,000 feet purchased @ P45.00 per foot Labor- 7,000 direct labor hours @ P79.00 per hour How much is the amount of direct materials debited to Work in Process Inventory? Choices: P405,000 P365,400 P346,500 P391,500
Integrity Company uses standard costing for each specialized product. The following information is available: Standards: Material- 3.0 feet per unit @ P42.00 per foot Labor- 2.5 hours per unit @ P75.00 per hour Actual: Production- 2,750 units produced during the month Material- 8,700 feet used; 9,000 feet purchased @ P45.00 per foot Labor- 7,000 direct labor hours @ P79.00 per hour How much is the amount of direct materials debited to Work in Process Inventory? Choices: P405,000 P365,400 P346,500 P391,500
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 7P: The standard cost summary for the most popular product of Phenom Products Co. is shown as follows,...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Integrity Company uses standard costing for each specialized product. The following information is available:
Standards:
Material- 3.0 feet per unit @ P42.00 per foot
Labor- 2.5 hours per unit @ P75.00 per hour
Actual:
Production- 2,750 units produced during the month
Material- 8,700 feet used; 9,000 feet purchased @ P45.00 per foot
Labor- 7,000 direct labor hours @ P79.00 per hour
How much is the amount of direct materials debited to Work in Process Inventory?
Standards:
Material- 3.0 feet per unit @ P42.00 per foot
Labor- 2.5 hours per unit @ P75.00 per hour
Actual:
Production- 2,750 units produced during the month
Material- 8,700 feet used; 9,000 feet purchased @ P45.00 per foot
Labor- 7,000 direct labor hours @ P79.00 per hour
How much is the amount of direct materials debited to Work in Process Inventory?
Choices:
P405,000
P365,400
P346,500
P391,500
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