The following data for the Popular Company pertain to the produc?tion of 2,000 clay pigeons during July: Standard variable-overhead cost was $6.00 per pound of clay.
Total actual variable-overhead cost was $18,200.
Standard variable-overhead cost allowed for units produced was $20,000.
Variable overhead-efficiency variance was $740 unfavorable.
_____ is standard direct-material amount per clay pigeon.
A)1.67 pound
B)3.50 pounds
C)6.00 pounds
D)10.00 pounds

Question

Quizplus · Accepted Answer

To find the standard direct-material amount per clay pigeon, we need to use the information on the standard variable-overhead cost per pound of clay:

Standard variable-overhead cost = $6.00 per pound of clay
Total actual variable-overhead cost = $18,200
Standard variable-overhead cost allowed = $20,000

We can use these numbers to calculate the standard direct-material amount per clay pigeon:

$20,000 / $6.00 per pound of clay = 3,333.33 pounds of clay allowed
3,333.33 pounds of clay allowed / 2,000 clay pigeons = 1.67 pounds of clay per pigeon

Therefore, the standard direct-material amount per clay pigeon is 1.67 pounds (choice A).

The Following Data for the Popular Company Pertain to the Produc?tion