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Beta Company 45000

Price: $2.50


Beta Company uses a standard cost accounting system. In 2014, 45,000 units
were produced. Each unit took several pounds of direct materials and 2 standard hours of
direct labor at a standard hourly rate of $12.00. Normal capacity was 86,000 direct labor
hours. During the year, 200,000 pounds of raw materials were purchased at $1.00 per
pound. All materials purchased were used during the year.

Instructions
(a) If the materials price variance was $10,000 unfavorable, what was the standard materials
price per pound?
(b) If the materials quantity variance was $23,750 favorable, what was the standard materials
quantity per unit?
(c) What were the standard hours allowed for the units produced?
(d) If the labor quantity variance was $10,080 unfavorable, what were the actual direct
labor hours worked?
(e) If the labor price variance was $18,168 favorable, what was the actual rate per hour?
(f) If total budgeted manufacturing overhead was $713,800 at normal capacity, what was
the predetermined overhead rate per direct labor hour?
(g) What was the standard cost per unit of product?
(h) How much overhead was applied to production during the year?
(i) Using selected answers above, what were the total costs assigned to work in process?

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