Maurice Tutor

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Category > Accounting Posted 11 Jul 2017 My Price 12.00

DM & DL variances

LO.2 (DM & DL variances) Aquatica uses a standard cost system for materials and labor in producing small fishing boats. Production requires three materials: fiberglass, paint, and a purchased trim package. The standard costs and quantities for materials and labor are as follows:

Standards for One Fishing Boat

 

2,000 pounds of fiberglass X $1.80 per pound

$3,600

6 quarts gel coat paint X $15.00 per quart

90

1 trim package

200

40 hours of labor X $25.00 per hour

  1,000

Standard cost for DM and DL

$4,890

The following actual data related to the production of 600 boats was recorded for July:

 

Material Purchased on Account

 

Fiberglass—2,100,000 pounds X $1.83 per pound Paint—1,000 gallons X $55.50 per gallon

Trim packages—640 X $205 per package

 

Material Used

 

Fiberglass—1,380,000 pounds Paint—924 gallons

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Jul 2017 11:07 PM My Price 12.00

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