Standard Cost System-Materials and Labor Variances

question 108

Essay

Standard cost system-materials and labor variances
The Hemlock Corporation produces a single product.The company has developed the following standards for labor and materials:
During the past month,the company purchased 3,500 pounds of direct materials at a total cost of $4,550.All of this material was used in the production of 1,300 units of output.Direct labor cost totaled $40,300 for the month.The following variances have been computed:
Compute the following.If the result is a variance indicate whether it is favorable or unfavorable.If necessary,round your answers.
(a)The standard price of materials________.
(b)The standard quantity of materials allowed per unit of output ________.
(c)The actual direct labor cost per hour for the month ________.
(d)The labor rate variance________.

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Definitions:

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer and is used to modify behavior.

VR 20 Schedule

VR 20 Schedule, or Variable Ratio 20 Schedule, is a reinforcement schedule in which a response is rewarded after an unpredictable number of responses, on average every 20th response.

Greeting Cards

Decorated cards sent to express personal sentiments, such as congratulations, sympathy, or holiday wishes, traditionally presented on special occasions.

Behavioral Extinction

The gradual decrease and eventual disappearance of a conditioned response when the reinforcement is no longer provided.