STANDARD COSTING Hermosa Enterprises recently experienced a fire, forcing the company to use incomplete information...
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Accounting
STANDARD COSTING
Hermosa Enterprises recently experienced a fire, forcing the company to use incomplete information to analyze operations. Consider the following data and assume that all materials purchased during the period were used in production.
Direct materials:
Standard price per pound: P 9
Actual price per pound: P 8
Price variance: P 20,000 F
Total of direct material variances, P 2,000 F
Direct labor:
Actual hours worked: 40,000
Actual rate per hour: P 15
Efficiency variance: P 28,000 F
Total of direct-labor variances: P 12,000 UF
Hermosa completed 12,000 units
Required: Determine the following:
(1) actual materials used,
(2) materials quantity variances,
(3) labor rate variance,
(4) standard labor rate per hour, and
(5) standard labor time per finished unit.
Can I have a step by step computation on how you will come up with the answer?
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