Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 10 Dec 2017 My Price 7.00

Whitecotton Company

Whitecotton Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established:
Direct materials (5 lbs @ $0.80) $ 4
Direct labor (1.5 hours @ $16.00) 24
Standard prime cost $28
During December, 52,000 pounds of material were purchased and used in production. There were 10,000 cases produced, with the following actual prime costs:
Direct materials $40,000
Direct labor 236,910 (for 14,900 hrs.)

Required:
1. Compute the materials variances.
2. Compute the labor variances.
3. What are the advantages and disadvantages that can result from the use of a standard costing system?

Answers

Maurice Tutor
(5)
Status NEW Posted 10 Dec 2017 09:12 PM My Price 7.00

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