CHAPTER 7 - PROBLEM 55

a. Determine the following amounts:

1. Standard quantity of material for production achieved
pairs of gloves
multiply by square foot latex

300000
0.85
255000 sq. ft.

2. Actual quantity of material used

Actual Quantity of material used:
SQ x Standard Price @
Material quantity variances
(Actual quantity x Standard price)

0.80

Actual Quantity unfavorable of material

3. Actual Quantity purchased

AQu of mate
material pu

256800
2500 sq. ft.
259300 sq. ft.

4. Actual price of material purchased

(Actual quantity purchased) (Actual - Standard price) = MPV
259300 (AP - 0.80)
5186
2593000(AP) - 207440 =
5186
259300(AP) =
212626
AP =
212626 / 259300
AP =
0.82 per foot
5. Standard hours for actual production
pairs of gloves
divide by pairs of gloves / hr

300000
1000
300 hours

204000
1440
205440
205440
0.80
256800

sq. ft.