accounting 425055

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.

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

Standard prime cost per unit			$	98.60

Required:

Prepare a schedule of standard production costs for January, based on actual production of 6,800 units. (Omit the “$” sign in your response.)

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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
Direct material	$
Direct labor

Total standard production costs	$

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.)