The Following Data Are for the Month of August for Murdock

question 19

Essay

The following data are for the month of August for Murdock Corporation, a company that makes saucers. During the month of August, the company actually produced 1,000 saucers, which is 50 units less than expected. Direct material purchased and used amounted to 10,500 pounds at a cost of $6.25 per pound. Actual direct labour was 2,900 hours at an actual cost of $10.50 per hour.
Required:
a. What is the standard cost per saucer for direct material and direct labour?
b. Compute the price and usage variances for direct material and direct labour.

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Definitions:

Increase Quality

The process or actions taken to enhance the standard, excellence, or value of products, services, or processes.

Decision

The act of making a choice among different alternatives or determining a course of action in a given situation.

Cooperation

Cooperation involves the process where two or more entities work or act together for common or mutually beneficial purposes.

Influence Tactics

Methods used to shape or change others' perceptions or behavior in a desired direction.