Al-Shabad Company Produces a Single Product During the Past Month,the Company Purchased 7,000 Pounds of Direct

question 62

Essay

Al-Shabad Company produces a single product.The company has set the following standards for materials and labor: $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Standard quantly or } \\\text { hours per unit }\end{array} & \begin{array} { c } \text { Standard price } \\\text { or rate }\end{array} \\\hline \text { Direct materials } & \text { ? pounds per unit } & \$ \text { ? per pound } \\\hline \text { Direct labor } & 3.0 \text { hours per unit } & \$ 10 \text { per hour } \\\hline\end{array}$$
During the past month,the company purchased 7,000 pounds of direct materials at a cost of $17,500.All of this material was used in the production of 1,300 units of product.Direct labor cost totaled $36,750 for the month The following variances have been computed: $$\begin{array} { | l | r | } \hline \text { Materials quantity variance } & \$ 1,375 \cup \\\hline \text { Total materials variance } & \$ 375 \mathrm {~F} \\\hline \text { Labor efficiency variance } & \$ 4,000 \mathrm {~F} \\\hline\end{array}$$
Required:
1. For direct materials:

a. Compute the standard price per pound of materials.
b. Compute the standard quantity allowed for materials for the month's production.
c. Compute the standard quantity of materials allowed per unit of product.

2. For direct labor:

a. Compute the actual direct labor cost per hour for the month.
b. Compute the labor rate variance.

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Definitions:

Critical Theory

A philosophical approach that critiques and seeks to transform society, emphasizing power structures and inequalities.

Race Matters

A concept emphasizing the significance of race as a critical factor influencing individuals' life experiences, opportunities, and societal dynamics.

Racial Inequality

is the unequal treatment or outcomes experienced by individuals based on racial or ethnic characteristics, evident in various areas like employment, education, and healthcare.

Patricia Hill Collins

An American sociologist known for her research and theory on race, class, gender, sexuality, and nationality, especially in the context of black feminist thought.