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New Jersey Valve Company manufactured 8,000 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following: Direct labor 48,900 hr. at $15.20

New Jersey Valve Company manufactured 8,000 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:

     
Direct labor 48,900 hr. at $15.20 per hr.
Direct material purchased 25,000 lb. at $3.30 per lb.
Direct material used 23,400 lb.
 

The control valve has the following standard prime costs:

           
Direct material 3 lb. at $3.20 per lb. $ 9.60  
Direct labor 6 hr. at $15.50 per hr.   93.00  
Standard prime cost per unit $ 102.60  
 

Prepare a schedule of standard production costs for January, based on actual production of 8,000 units.

 
 
NEW JERSEY VALVE COMPANY: CAMDEN PLANT
Schedule of Standard Production Costs
Based on 8,000 Units
For the Month of January
  Standard Costs
Direct material  
Direct labor  
Total standard production costs $0

For the month of January, compute the following variances.

For the month of January, compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

   
 
 
       
a. Direct-material price variance _____    
b. Direct-material quantity variance____    
c. Direct-material purchase price variance_____    
d. Direct-labor rate variance________    
e. Direct-labor efficiency variance_______    

Jul 14 2021 View more View Less

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