Anderson Company Manufactures a Single Product Required:
A

Anderson Company manufactures a single product.The direct materials standard calls for 3 pounds of direct material per unit.The standard for direct material cost per pound is $15.50.A computer error has wiped out the records for the direct labor standards but the following information is found for the month of October:
$\begin{array}{|l|c|}\hline \text { Number of units produced } & 700 \\\hline \text { Cost of actual direct materials purchased and used } & \$ 33,000.00 \\\hline \text { Actual direct labor hours used } & \$ 1,450.00 \\\hline \text { Actual direct labor cost incurred } & \$ 21,025.00 \\\hline \text { Materials price variance -- favorable } & \$ 1,100.00 \\\hline \text { Labor efficiency variance -- unfavorable } & \$ 712.50 \\\hline \text { Total labor variance--unfavorable } & \$ 1,075.00 \\\hline\end{array}$
Required:
a.Calculate the number of pounds of direct materials purchased and used during October.
b.Calculate the materials efficiency (quantity)variance.
c.Calculate the standard direct labor rate per hour.
d.Calculate the standard direct labor hours allowed for October's production.
Answer