A company sets standard costs for its product as follows: Direct materials: 4 kilograms per unit at
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Question:
A company sets standard costs for its product as follows:
Direct materials: 4 kilograms per unit at $6 per kilogram
Direct labor: 2 hours per unit at $15 per hour
Variable overhead: $8 per unit During the month, the company produced 3,000 units and incurred the following actual costs:
Direct materials: 12,500 kilograms at $6.20 per kilogram
Direct labor: 6,100 hours at $14.80 per hour
Variable overhead: $25,000 Calculate the direct material price variance, direct material quantity variance, direct labor rate variance, direct labor efficiency variance, and variable overhead spending variance.
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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