New Jersey Valve Company manufactured 6,800 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:
| Direct labor | 41,600 | hr. at $14.70 per | |
| Direct material purchased | 26,000 | lb. at $2.10 per | |
| Direct material used | 25,600 | lb. | |
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| The control valve has the following standard prime costs: |
| Direct material: | 4 | lb. at $2.00 per | $ | 8.00 | |
| Direct labor: | 6 | hr. at $15.10 per | 90.60 | ||
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| Standard prime cost per unit | $ | 98.60 | |||
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| Required: |
| 1. |
Prepare a schedule of standard production costs for January, based on actual production of 6,800 units. (Omit the “$” sign in your response.) Don't use plagiarized sources. Get Your Custom Essay on
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| NEW JERSEY VALVE COMPANY CAMDEN PLANT SCHEDULE OF STANDARD PRODUCTION COSTS BASED ON 6,800 UNITS FOR THE MONTH OF JANUARY |
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| Direct material | $ |
| Direct labor | |
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| Total standard production costs | $ |
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| 2. |
For the month of January, compute the following variances, indicating whether each is favorable or unfavorable. (Select “None” for no effect (i.e., zero variance). Input all amounts as positive values. Omit the “$” sign in your response.) |
| Direct material price variance | $ | |
| Direct material quantity variance | $ | |
| Direct labor rate variance | $ | |
| Direct labor efficiency variance | $ |
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