Reference no: EM133170792
Question - During June, Argyle Company purchased 450,000 kilograms of direct materials at a total cost of $967,500. The total factory wages for June were $601,250, 80 percent of which were for direct labour. Argyle manufactured 50,000 units of product during June using 395,000 kilograms of direct materials and 32,500 direct labour hours.
Argyle uses a standard cost system in which direct materials inventory is carried at standard cost. Argyle has established the following standards for the prime costs of one unit of product:
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Standard Quantity
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Standard Price
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Direct Materials
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8 kilograms
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$ ? /kilogram
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Direct Labour
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? hours
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$15.00/hour
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Additional information for June:
The price variance for the direct materials acquired is $22,500 unfavourable
The direct labour quantity variance is $75,000 favourable.
Required -
1. What is the standard price per kilogram of direct materials?
2. What was the direct materials quantity variance for June?
3. What was the direct labour price variance for June?
4. What is the standard number of direct labour hours for one unit?