(Solved by Humans)-Problem I. Claypit Co. manufactures high-quality wooden jewelry boxes. One particular product...

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Problem I. Claypit Co. manufactures high-quality wooden jewelry boxes. One particular product requires the following direct materials and direct labor for one unit: Wood (DM) Direct labor (DL) Standard # allowed 2.5 pounds ??? hrs. Standard Price (Rate) $ ??? per pound $18.00 per. hr. During a recent month, the following information was determined: -- There was no beginning or ending direct materials or work in process inventory. A total of 1,000 units were manufactured. -- For the month, the company purchased a shipment of wood for $6.25 per pound for $18,750. All of the wood was used in production. -- For the month, total direct labor cost was $80,000 for 5,000 hours. -- Total direct materials variance: $3,750 U -- Materials price variance: $750 U -- Direct labor usage (efficiency) variance: $18,000 U REQUIRED: Fill in the boxes below with the requested amounts (be sure to identify variances as Favorable or Unfavorable). Answers What was the actual number of pounds of material purchased? What was the standard cost per pound of material purchased? What were the standard pounds allowed for the units produced? What was the standard DM cost allowed for all the units? What was the materials quantity (usage, efficiency) variance? What was the actual labor rate per hour? What were the standard DL hours allowed for all the units? What were the standard DL hours allowed for one unit? What was the labor rate variance? What was the total labor variance? Document Preview: Problem I. Claypit Co. manufactures high-quality wooden jewelry boxes. One particular product requires the following direct materials and direct labor for one unit: Standard # allowed Standard Price (Rate) Wood (DM) 2.5 pounds $ ??? per pound Direct labor (DL) ??? hrs. $18.00 per. hr. During a recent month, the following information was determined: -- There was no beginning or ending direct materials or work in process inventory. A total of 1,000 units were manufactured. -- For the month, the company purchased a shipment of wood for $6.25 per pound for $18,750. All of the wood was used in production. -- For the month, total direct labor cost was $80,000 for 5,000 hours. -- Total direct materials variance: $3,750 U -- Materials price variance: $750 U -- Direct labor usage (efficiency) variance: $18,000 U REQUIRED: Fill in the boxes below with the requested amounts (be sure to identify variances as Favorable or Unfavorable). Answers What was the actual number of pounds of material purchased? What was the standard cost per pound of material purchased? What were the standard pounds allowed for the units produced? What was the standard DM cost allowed for all the units? What was the materials quantity (usage, efficiency) variance? What was the actual labor rate per hour? What were the standard DL hours allowed for all the units? What were the standard DL hours allowed for one unit? What was the labor rate variance? What was the total labor variance?