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Antuatica uses a standard cost system for materials and labor in producing small fishing boats....

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Accounting

Antuatica uses a standard cost system for materials and labor in producing small fishing boats. Production requires fiberglass, paint and a purchased trim package as well as direct as follows:

2,000 pounds of fiberglass @ $1.80 per pound

$3,600

6 quarts of gel coat paint @ $15 per quart

90

1 trim package

200

40 hours of labor @ $25 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 in July

Materials Purchased on Account

Fiberglass 2,100,000 pounds @$1.83 per pound

Paint 1,000 gallons @$55.50 per gallon

Trim Packages 640 @ $205 per package

Materials Used

Fiberglass 1,380,000 pounds

Paint 924 gallons

Trim packages 608

Direct Labor Used

23,850 hours @ $23.50 per hour

REQUIRED:

  1. Determine the direct materials price and efficiency variances for Fiberglass.

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