Use the information below to answer the following question(s).
The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (all materials purchased were used):
Standard cost: $6.00 per kilogram of clay
Total actual cost: $11,200
Standard cost allowed for units produced was $12,000
Materials efficiency variance was $240 unfavourable
Direct Manufacturing Labour:
Standard cost is 2 pots per hour at $24.00 per hour
Actual cost per hour was $24.50
Actual labour was 972 hours
-What is the standard direct material amount per pot?
A) 1.00 kilogram
B) 1.88 kilograms
C) 2.12 kilograms
D) 3.00 kilograms
E) 4.00 kilograms

Question

Use the information below to answer the following question(s).
The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (all materials purchased were used):
 Standard cost: $6.00 per kilogram of clay
 Total actual cost: $11,200
 Standard cost allowed for units produced was $12,000
 Materials efficiency variance was $240 unfavourable
Direct Manufacturing Labour:
 Standard cost is 2 pots per hour at $24.00 per hour
 Actual cost per hour was $24.50
 Actual labour was 972 hours
-What is the standard direct material amount per pot?
A) 1.00 kilogram
B) 1.88 kilograms
C) 2.12 kilograms
D) 3.00 kilograms
E) 4.00 kilograms

Quizplus · Accepted Answer

Standard cost per pot = $12,000/$6 = 2,000 kg. allowed
Standard number of kilograms per pot = 2,000 kg./2,000 pots = 1.0 kilogram per pot

Use the Information Below to Answer the Following Question(s)