A Partial Standard Cost Card for the Single Product Produced

question 53

Essay

A partial standard cost card for the single product produced by Mercer Company is given below:
Direct materials:
3 pounds @ $8 per pound
Direct labor:
? hours @ ? per hour
Last period the company produced 4,000 units of product.Cost and other data associated with this production are given below:
The direct materials purchases variance is computed when the materials are purchased.
Required:
a.Determine the number of pounds of direct materials purchased and used during the period.
b.Determine the materials quantity variance.
c.Determine the standard direct labor rate per direct labor hour.
d.Determine the standard hours allowed for the production of the period.

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Definitions:

Variable-Ratio

A reinforcement pattern in which a reaction is rewarded following a random number of responses, resulting in consistent and elevated rates of response.

Fixed-Ratio

A reinforcement schedule where a response is reinforced only after a specified number of responses have occurred.

Fixed-Interval

A reinforcement schedule in which the first reaction is reinforced after a predetermined period, resulting in a patterned series of responses.

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.