The following data for the Unbreakable Company pertain to the production of 2,000 bottles during July: Standard variable overhead cost: $26.00 per pound of glass. Total actual variable overhead cost: $24,800.
Standard variable overhead cost allowed for units produced was $26,000. Variable overhead efficiency variance was $540 unfavorable.
Is standard direct material amount per bottle.
A) 13.00 pounds
B) .50 pound
C) 2.80 pounds
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

The standard variable overhead cost allowed for units produced is $26,000, and the standard cost per pound is $26.00. This means 1,000 pounds of glass were allowed (26,000 / 26). Since 2,000 bottles were produced, the standard direct material amount per bottle is 0.50 pound (1,000 pounds / 2,000 bottles).

The Following Data for the Unbreakable Company Pertain to the Production