Antuatica uses a standard cost system for materials and labor in producing small fishing boats....
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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
Determine the direct labor price and efficiency variances if direct labor is fixed and we made 610 boats.
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