Variance analysis, material, and labor Pharout Company uses a standard cost system. Job 822 is for the
Question:
Variance analysis, material, and labor Pharout Company uses a standard cost system. Job 822 is for the manufacture of 500 units of the product P521. The company's standards for one unit of product P521 are as follows:
The job requires 2800 ounces of raw material costing $5880. An unfavor¬ able labor rate variance of $250 and a favorable labor efficiency variance of $100 also were determined for this job.
(a) Determine the direct material price variance.
(b) Determine the direct material use variance.
(c) Determine the actual quantity of direct labor hours used on job 822.
(d) Determine the actual labor costs incurred for job 822.(LO 1)
Step by Step Answer:
Management Accounting
ISBN: 9780130101952
3rd Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker