The following data for the Glass Company pertain to the produc?tion of 2,000 bottles during June: Standard variable-overhead cost: $26.00 per pound of glass.
Total actual variable-overhead cost: $24,800.
Standard variable-overhead cost allowed for units produced was $26,000.
Variable-overhead efficiency variance was $540 unfavorable.
_____ is standard direct-material amount per bottle.
A).50 pound
B)2.80 pounds
C)13.00 pounds
D)None of these answers is correct

Question

Quizplus · Accepted Answer

The standard variable-overhead cost allowed for units produced is $26,000, and the standard cost per pound is $26.00. Therefore, the standard amount of glass used is $26,000 / $26.00 = 1,000 pounds. For 2,000 bottles, the standard direct-material amount per bottle is 1,000 pounds / 2,000 bottles = 0.50 pounds.

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