Solved by verified expert :Chapter Eleven Assignment
Part One (10 points)
Standard
Gears produces lawn mower gears. It uses units as the cost driver for overhead.
The following information was provided concerning its standard cost system:
Actual Data
Budgeted and
Standard Data
Produced
12,400 units
Budgeted units
12,500 units
Materials purchased
4,650 lbs. for a total
cost of $32,550
Budgeted materials
0.40 lb. @ $7.10 per lb.
Materials used
4,700 lbs.
Budgeted labor
36 minutes @ $11.00 per
hour
Labor worked
7,460 hrs. costing $79,822
Budgeted variable overhead
$35,625
Actual overhead
Fixed: $84,800
Variable $36,100
Budgeted fixed overhead
$85,500
How much is the standard cost of each
lawn mower gear?
Part Two (10 points)
Provide BOTH the direct
material quantity and price variances for Standard Gears (info in table above).
