Klash Company adopted a standard cost system several years ago. The company uses standard costs for all of its inventories. The standard costs for direct materials and labor for its single product are as follows: Materials (12 kilograms/unit × $7.00/kilogram) = $84.00/unit; direct labor (8 hours/unit × $12.00/hour) = $96.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: Note: number of kilograms issued to production during the period = number of kilograms purchased.
Required:
1. Calculate the standard cost of the actual kilograms of material purchased.
2. Calculate the total standard kilograms for the production of the period (that is, for "equivalent units produced with respect to direct materials")
3. Calculate the total standard cost of materials for the production of the period.
4. Calculate the actual price per kilogram of material of material purchased this period.
5. Calculate the direct labor rate variance.

Question

Klash Company adopted a standard cost system several years ago. The company uses standard costs for all of its inventories. The standard costs for direct materials and labor for its single product are as follows: Materials (12 kilograms/unit × $7.00/kilogram) = $84.00/unit; direct labor (8 hours/unit × $12.00/hour) = $96.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:  Note: number of kilograms issued to production during the period = number of kilograms purchased.
Required:
1. Calculate the standard cost of the actual kilograms of material purchased.
2. Calculate the total standard kilograms for the production of the period (that is, for "equivalent units produced with respect to direct materials")
3. Calculate the total standard cost of materials for the production of the period.
4. Calculate the actual price per kilogram of material of material purchased this period.
5. Calculate the direct labor rate variance.

Quizplus · Accepted Answer

The Answer of Klash Company adopted a standard cost system several years ago. The company uses standard costs for all of its inventories. The standard costs for direct materials and labor for its single product are as follows: Materials (12 kilograms/unit × $7.00/kilogram) = $84.00/unit; direct labor (8 hours/unit × $12.00/hour) = $96.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:  Note: number of kilograms issued to production during the period = number of kilograms purchased.
Required:
1. Calculate the standard cost of the actual kilograms of material purchased.
2. Calculate the total standard kilograms for the production of the period (that is, for "equivalent units produced with respect to direct materials")
3. Calculate the total standard cost of materials for the production of the period.
4. Calculate the actual price per kilogram of material of material purchased this period.
5. Calculate the direct labor rate variance.

Klash Company Adopted a Standard Cost System Several Years Ago