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Refliections, Inc. is a company that manufactures premium car wax. The company uses a standard cost system. From the accounting records of the firm you obtain the following information:
Standard material cost-------------- $3.90 per pound Standard direct labor cost--------- $6.00 per hour Standard pounds per unit---------- 5 pounds Standard labor hours per unit----- 3 hours Materials purchased ---------------- 39,500 (used 39,000) (this was a correction, not really sure how to interpret) Direct labor used---------------------- 25,000 hours Actual material cost----------------- $4.05 per pound Actual labor cost--------------------- $6.95 per hour
Number of units actually produced------ 8,000 units Number of units planned-------------------- 10,000 units
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