BUS 5110-Normal volume per month is 40,000 direct labor hours

Normal volume per month is 40,000 direct labor hours. Wolverine's January 2014 budget was based on normal

volume. During January, Wolverine produced 7,800 units with records indicating the data following:

Actual:

Direct materials purchased

25,000 lbs @ $3.60

Direct materials used

23,100 lbs

Direct labor

40,100 hours @ $6.30

(excluding overhead)

The Wolverine Company Standards:

Direct Materials (2 lbs @ $3.50 per lb.)

$7.00

Direct Labor (4 hours @ $6.50 per hour)

$26.00

STANDARD COST PER UNIT

$33.00