what is the standard quantity of material and the standard labor time for july 642446
(DM & DL variances) Schmidt Co. has the following standard material and labor quantities and costs for one unit of Product SWK#468:
Material |
1.85 pounds @ $3.50 per pound |
Labor |
0.04 hours @ $12 per hour |
During July, the purchasing agent found a “good deal” on the raw material needed for Product SWK#468 and bought 100,000 pounds of material at $3.15 per pound. In July, the company produced 48,000 units of Product SWK#468 with the following material and labor usage:
Material |
95,000 pounds |
Labor |
2,200 hours @ $12.10 (due to a renegotiated labor contract) |
a. What is the standard quantity of material and the standard labor time for July?
b. Calculate the material and labor variances for July.
c. Did the purchasing agent make a “good deal” on the raw material? Explain.