1) Labor data for making one gallon of finished product in Tang Company are as follows: (1) Price-hourly wage rate $16.55, payroll taxes $0.81, and fringe benefits $1.77. (2) Quantity-actual production time 1.39 hours, rest periods and cleanup 0.32 hours, and setup and downtime 0.17 hours.
Compute the following. (Round answers to 2 decimal places, e.g. 1.25.)
| (a) |
|
Standard direct labor rate per hour. |
|
$
|
|
| (b) |
|
Standard direct labor hours per gallon. |
|
|
hours |
| (c) |
|
Standard labor cost per gallon. |
|
$
|
2) Simba Company's standard materials cost per unit of output is $11.52 (2.40 pounds x $4.80). During July, the company purchases and uses 3,100 pounds of materials costing $16,740 in making 1,400 units of finished product.
Compute the total, price, and quantity materials variances.