Faas Marine Stores Company manufactures decorative fittings for luxury yachts which require highly skilled labor, and special metallic materials. Faas uses standard costs to prepare its flexible budget. For the first quarter of 2011, direct material and direct labor standards for one of their popular products were as follows:
$$\begin{array} { l l }
\text { Materials: } & 1.5 \text { pounds per unit; } \$ 4.00 \text { per pound } \
\text { Labor: } & 2.0 \text { hours per unit; } \$ 18.00 \text { per hour }
\end{array}$$
During the first quarter, Faas produced 5,000 units of this product.
- Actual direct materials costs were $29,750. Actual direct labor costs were $184,800. Faas is now preparing an analysis of actual versus flexible budget. Using the reporting format below, please complete the data for direct materials and direct labor costs, and fill in all remaining data cells.

Question

Faas Marine Stores Company manufactures decorative fittings for luxury yachts which require highly skilled labor, and special metallic materials. Faas uses standard costs to prepare its flexible budget. For the first quarter of 2011, direct material and direct labor standards for one of their popular products were as follows:
$$\begin{array} { l l } 
\text { Materials: } & 1.5 \text { pounds per unit; } \$ 4.00 \text { per pound } \
\text { Labor: } & 2.0 \text { hours per unit; } \$ 18.00 \text { per hour }
\end{array}$$
During the first quarter, Faas produced 5,000 units of this product.
-  Actual direct materials costs were $29,750. Actual direct labor costs were $184,800. Faas is now preparing an analysis of actual versus flexible budget. Using the reporting format below, please complete the data for direct materials and direct labor costs, and fill in all remaining data cells.

Quizplus · Accepted Answer

The Answer of Faas Marine Stores Company manufactures decorative fittings for luxury yachts which require highly skilled labor, and special metallic materials. Faas uses standard costs to prepare its flexible budget. For the first quarter of 2011, direct material and direct labor standards for one of their popular products were as follows:
$$\begin{array} { l l } 
\text { Materials: } & 1.5 \text { pounds per unit; } \$ 4.00 \text { per pound } \
\text { Labor: } & 2.0 \text { hours per unit; } \$ 18.00 \text { per hour }
\end{array}$$
During the first quarter, Faas produced 5,000 units of this product.
-  Actual direct materials costs were $29,750. Actual direct labor costs were $184,800. Faas is now preparing an analysis of actual versus flexible budget. Using the reporting format below, please complete the data for direct materials and direct labor costs, and fill in all remaining data cells.

Faas Marine Stores Company Manufactures Decorative Fittings for Luxury Yachts