Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Company has set the following standards related to the prime costs for its single product: standard quantity standard price direct materials 11 pounds per
ABC Company has set the following standards related to the prime costs for its single product: standard quantity standard price direct materials 11 pounds per unit $3.00 per pound direct labor 8 hours per unit $14.00 per hour ABC Company reported the following information for the month of September: 1. The direct material quantity variance was $7,380 unfavorable. 2. The direct labor rate variance was $4,410 favorable. 3. 8,140 units were produced. 4. Direct materials were purchased at a price of $3.75 per pound. 5. The actual rate paid to direct laborers was $13.93 per hour. 6. At September 1, the direct materials inventory consisted of 8,000 pounds. At September 30, the direct materials inventory totaled 5,000 pounds. Calculate the direct labor efficiency variance for September. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, enter your answer as a number (i.e., 5000).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started