One type of chocolate candy manufactured by Schorg's Candies calls for 4 ounces of chocolate at a standard cost of $0.09 per ounce. Twenty chocolate candies can be made in one direct labor hour. The company's average wage rate is $14 per direct labor hour.
During June, Schorg's Candies bought 65,000 ounces of chocolate at a cost of $0.085 per ounce. Production for the month was 15,900 candies and 64,100 ounces of chocolate were used. Direct labor hours worked during June were 805 and workers were paid $11,125.10.
Required:
a. Calculate Schorg's Candies material price and material quantity. The purchasing agent is responsible for the material price variance and the production manager is responsible for the material quantity variance.
b. What was the actual hourly rate for June for direct labor employees?
c. What are the standard hours allowed for June production?
d. Calculate Schorg's Candies labor rate, labor efficiency, and total labor variance.

Question

One type of chocolate candy manufactured by Schorg's Candies calls for 4 ounces of chocolate at a standard cost of $0.09 per ounce. Twenty chocolate candies can be made in one direct labor hour. The company's average wage rate is $14 per direct labor hour. 
During June, Schorg's Candies bought 65,000 ounces of chocolate at a cost of $0.085 per ounce. Production for the month was 15,900 candies and 64,100 ounces of chocolate were used. Direct labor hours worked during June were 805 and workers were paid $11,125.10. 
Required:
a.	Calculate Schorg's Candies material price and material quantity. The purchasing agent is responsible for the material price variance and the production manager is responsible for the material quantity variance.
b.	What was the actual hourly rate for June for direct labor employees?
c.	What are the standard hours allowed for June production?
d.	Calculate Schorg's Candies labor rate, labor efficiency, and total labor variance.

Quizplus · Accepted Answer

The Answer of One type of chocolate candy manufactured by Schorg's Candies calls for 4 ounces of chocolate at a standard cost of $0.09 per ounce. Twenty chocolate candies can be made in one direct labor hour. The company's average wage rate is $14 per direct labor hour. 
During June, Schorg's Candies bought 65,000 ounces of chocolate at a cost of $0.085 per ounce. Production for the month was 15,900 candies and 64,100 ounces of chocolate were used. Direct labor hours worked during June were 805 and workers were paid $11,125.10. 
Required:
a.	Calculate Schorg's Candies material price and material quantity. The purchasing agent is responsible for the material price variance and the production manager is responsible for the material quantity variance.
b.	What was the actual hourly rate for June for direct labor employees?
c.	What are the standard hours allowed for June production?
d.	Calculate Schorg's Candies labor rate, labor efficiency, and total labor variance.

One Type of Chocolate Candy Manufactured by Schorg's Candies Calls