Question

Zero waste, inc. manufactures food storage devices. recently, a data breach occurred in the company and records were lost. zero waste recovered the following information for the prior period for its most popular 4 ounce storage container: total direct labor variance $7,500 u actual direct labor hours logged 15,000 actual direct labor costs $135,000 standard direct labor unit cost $3 given the actual direct labor rate was $1.00 less per hour than expected, how many 4 ounce storage containers did zero waste produce during the prior period? question 10 options:

- 45,000 containers
- 42,500 containers
- 43,000 containers
- 47,500 containers
- 42,000 containers

Answer 1

Zero Waste, Inc. produced 45,000 containers. The calculation involves determining the expected and actual direct labor rates, calculating standard direct labor hours, and dividing this by direct labor hours per unit to find the number of units produced.

Step-by-step explanation:

To determine how many 4 ounce storage containers Zero Waste, Inc. produced during the prior period, we first need to establish the standard and actual direct labor rates per hour. The actual direct labor rate was $1.00 less than expected. Since the standard direct labor unit cost is $3.00, the expected direct labor rate per hour would have been $4.00 (actual $3.00 rate plus the $1.00 difference).

Given that the actual direct labor costs were $135,000 for 15,000 hours, the actual direct labor rate per hour is $9.00 ($135,000 / 15,000 hours). Now, we can find the standard direct labor hours by dividing the total actual direct labor costs by the standard direct labor rate per hour ($135,000 / $4.00 = 33,750 hours).

To calculate the number of units produced, we divide the standard direct labor hours by the direct labor hours per unit. Since the standard direct labor unit cost is $3.00 and the expected direct labor rate is $4.00 per hour, each unit requires 0.75 hours ($3.00 / $4.00) of direct labor. Finally, divide the standard direct labor hours by the direct labor hours per unit to get the total number of units produced: 33,750 hours / 0.75 hours per unit = 45,000 containers.