Question

Weygandt, Managerial Accounting, 7e WilayPLUSS Introductory Managerial Accounting tice Assignment Gradebook ORION Downloadable eTextbook Bent CALCULATOR HEVAGE HY INSTRUCTOR Brief Exercise 11-1 Lopez Company uses both standards and budgets. For the year estimated production of Product is 527,000 units. Total estimated cost for materials and labor are $1,264,800 and $1,686,400 Compute the estimates for (a) a standard cost and (b) a budgeted cost. (Round standard costs to 2 decimal places, .. 1.25.) Materials Labor (a) Standard cost $ (b) Budgeted cost $ LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER Policy I 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wilson arch o 11 is E

Answer 1

(a) Standards are stated as a per unit amount. Thus, the standards are materials $2.4 ($1,264,800 ÷ 527,000) and labor $3.2 ($1,686,400 ÷ 527,000).

(b) Budgets are stated as a total amount. Thus, the budgeted costs for the year are materials $1,264,800 and labor $1,686,400.

(a) Standard Cost (b) Budgeted Cost Material $3.2 $1,264,800 Labor $2.4 $1,686,400