Refer to the preceding question about Ranger Company. In producing its product, Ranger Company used 1,500 pounds
Question:
Refer to the preceding question about Ranger Company. In producing its product, Ranger Company used 1,500 pounds of direct materials at an actual cost of \($1.50\) per pound. The standard for Ranger’s production level was 1,400 pounds at \($1.40\) per pound. What is Ranger’s direct materials quantity variance?
a. \($150\) favorable.
b. \($140\) favorable.
c. \($150\) unfavorable.
d. \($140\) unfavorable.
Data from Preceding question
In producing its product, Ranger Company used 1,500 hours of direct labor at an actual cost of \($15\) per hour. The standard for Ranger’s production level is 1,400 hours at \($14\) per hour. What is Ranger’s direct labor rate variance?
Step by Step Answer:
Managerial Accounting
ISBN: 9780078110771
1st Edition
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips