Atlace Manufacturers Uses a Standard Costing System *Allocated Based on Direct Labor Hours

question 82

Essay

Atlace Manufacturers uses a standard costing system. Data on standard costs and actual costs are as follows:
$\begin{array}{lll}\text { Direct materials: } & \text { Standard } & \text { Actual } \\\text { Raw material units per unit of output } & 2.0 & 3.3 \\\text { Price per unit of raw material } & \$ 5.00 & \$ 4.80 \\\text { Materials cost per unit } & \$ 10.00 & \$ 16.00 \\\text { Number of units } & 3,000 & 3,000 \\\text { Direct materials cost } & \$ 30,000 & \$ 48,000\end{array}$ $\begin{array}{lll}\text { Direct labor: } & \text { Standard } & \text { Actual } \\\text { Hours per unit } & 0.5 & 0.4 \\\text { Cost per hour } & \$ 18.00 & \$ 20.00 \\\text { Labor cost per unit } & \$ 9.00 & \$ 8.00 \\\text { Number of units } & 3,000 & 3,000 \\\text { Direct labor cost } & \$ 27,000 & \$ 24,000\end{array}$ $\begin{array}{lll}\text { Variable overhead } & \text { Standard } & \text { Actual } \\\text { Hours per unit } & 0.5 & 0.4 \\\text { Cost per hour } & \$ 30.00 & \$ 29.00 \\\text { Variable overhead cost per unit } & \$ 15,00 & \$ 11.60 \\\text { Number of units } & 3,000 & 3,000 \\\text { Variable overhead cost } & \$ 45,000 & \$ 34,800\end{array}$ *allocated based on direct labor hours
$\begin{array}{lll}\text { Fixed overhead* } & \text { Standard } & \text { Actual } \\\text { Hours per unit } & 0.5 & 0.4 \\\text { Cost per hour } & \$ 10.00 & \$ 9.00 \\\text { Fixed overhead cost per unit } & \$ 5.00 & \$ 3.60 \\\text { Number of units } & 3,000 & 3,000 \\\text { Fixed overhead cost } & \$ 15,000 & \$ 10,800\end{array}$ *allocated on the basis of direct labor hours
Give journal entry to transfer the cost of units from Work-in-Process Inventory to Finished Goods Inventory.

Understand the importance of tone and strategy in effective business communication.

Recognize the structure and strategies for crafting effective claim and complaint messages.

Identify the elements of persuasive requests in business communication.

Differentiate between direct and indirect strategies in business messages.

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Definitions:

Bargaining Strength

The power that parties have during negotiations, influenced by their resources, alternatives, and strategies.

Economic Power

The ability of a country, corporation, or group to influence economic events, conditions, and policies at a local, national, or international level.

Large Corporations

Companies that operate on a grand scale in terms of revenue, employees, or market share, and usually have a wide geographical presence.

National Labor Relations Act

The National Labor Relations Act (NLRA) is a foundational statute of US labor law that guarantees workers the right to form unions and engage in collective bargaining.