Question
1. A manufactured product has the following information for June.StandardActualDirect materials(6 lbs. @ $8 per lb.)48,500lbs. @ $8.10 per lb.Direct labor(2 hrs. @ $16 per
1.
A manufactured product has the following information for June.StandardActualDirect materials(6 lbs. @ $8 per lb.)48,500lbs. @ $8.10 per lb.Direct labor(2 hrs. @ $16 per hr.)15,700hrs. @ $16.50 per hr.Overhead(2 hrs. @ $12 per hr.)$198,000Units manufactured8,000Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.
2.A manufactured product has the following information for June.StandardActualDirect materials(6 lbs. @ $8 per lb.)48,500lbs. @ $8.10 per lb.Direct labor(2 hrs. @ $16 per hr.)15,700hrs. @ $16.50 per hr.Overhead(2 hrs. @ $12 per hr.)$198,000Units manufactured8,000Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
978-1259024979
