Principles of Cost Accounting: P8-10 On May 1, Magnus Company began the manufacture

Principles of Cost Accounting

P8-10 Analyses; Review of chapter
On May 1, Magnus Company began the manufacture of a new mechanical device known as Triple X. The company installed a standard cost system in accounting for manufacturing costs. The standard costs for a unit of Triple X follow:
Raw materials (5lbs @ $1/lb) 5.00
Direct labor (1 hr @ $8/hr) 8.00
Overhead (50% of direct labor costs) 4.00

The following data came from Magnus' records for the month of May:
Actual production 4,000
Units sold 2,500

Debit Credit
Sales 50,000
Purchases (22,000 pounds) 23,300
Materials price variance 1,300
Materials quantity variance 1,000
Direct labor rate variane 770
Direct labor efficiency variance 1,200
Manufacturing overhead total variance 500
The amount shown above for the materials price variance is applicable to raw materials purchased during May.

Compute each of the following items for Matrix for the month of May. Show computations in good form.
1. Standard quantity of raw materials allowed (in pounds) for actual production.
2. Actual quantity of raw materials used (in pounds). (Hint: Be sure to consider the materials quantity variance.)
3. Standard direct labor hours allowed.
4. Actual direct labor hours worked.
5. Actual direct labor rate. (Hint: Be sure to consider the direct labor rate variance.)
6. Actual total overhead
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