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(Solved) : Kinkel Corporation Makes A Product With The Following Standard Costs . . .

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Answer to : (Solved) : Kinkel Corporation Makes A Product With The Following Standard Costs . . .

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Description

Kinkel Corporation makes a product with the following standard costs for direct material and direct labor:
Direct material: 1.50 meters at $5.40 per meter . . . . . . . $8.10
Direct labor: 0.25 hours at $14.00 per hour . . . . . . . . . . . $3.50
During the most recent month, 8,000 units were produced. The costs associated with the month’s production of this product were as follows:
Material purchased: 15,000 meters at $5.60 per meter . . . . . . . $84,000
Material used in production: 11,900 meters . . . . . . . . . . . . . . . . —
Direct labor: 1,950 hours at $14.20 per hour . . . . . . . . . . . . . . . $27,690
The standard cost variances for direct material and direct labor are:
Materials price variance: 15,000 meters at $0.20 per meter U . . . . . . . $3,000 U
Materials quantity variance: 100 ... View full description