Assume that Iron company producing 700 laptops during 2018. Standard and actual costs are as...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Assume that Iron company producing 700 laptops during 2018. Standard and actual costs are as follows:: The standard quantity of direct material is 60 KG iron, natural loss of iron 6%, damaged Pieces 2%, the standard price is $ 16/KG. While the actual units used are 29,120 KG, each KG $ 12. The standard direct labor time is 8 hours, and the standard number of workers is 40. Standard damaged rate is 10%, standard production stops 10%, standard work break is 3 hours, standard direct labor wage is 6 plus 2 as a bonus. While in fact, the direct labor hour is 62,650, the actual wage is the same as the standard price but without the bonus. The application standard rate is direct material quantity. And the application standard rate is $ 8/ KG. While in actuality, the total overhead cost is $86,000. Requirements; 1- Calculate the standard and actual costs 2- Analyze the deviation for each element and provide a comment in the result of deviation
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
