The Following Data Are for the Month of April for Scott

question 97

Essay

The following data are for the month of April for Scott Corporation, a company that makes trophies. $\begin{array}{llll}&\text { Standard Inputs } & \text { Standard } \\&\text { Expected for Each } & \text { Price per } \\&\text { Unit of Output } & \text { Unit of Input }\\\text { Direct material } & 5 \text { pounds } & \$ 12 \text { perpound } \\\text { Direct labor } & 15 \text { hours } & \$ 12 \text { per hour }\end{array}$ During the month of April the company actually produced 1,000 trophies, which is 100 units less than expected. Direct material purchased and used amounted to 5,500 pounds at a cost of $12.50 per pound. Actual direct labor was 1,450 hours at an actual cost of $13.00 per hour.
Required:
a. What is the standard cost per statue for direct material and direct labor?
b. Compute the price and usage variances for direct material and direct labor.

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Definitions:

Frictional Unemployment

This refers to unemployment that occurs when people are between jobs or are entering the workforce for the first time.

Labor Supplied Exceeding

A situation where the quantity of labor offered by workers surpasses the quantity demanded by employers.

Long-run Unemployment

Unemployment that persists in an economy for an extended period, often due to fundamental shifts in the economy or structural changes in the labor market.

Labor Markets

Markets where labor is traded, involving the hire and utilization of workers, affected by factors like wages, demand, and supply.