Question
ABC Company uses a standard cost system to account for the costs of its production of Product X. Standards are 2 pounds of materials at
ABC Company uses a standard cost system to account for the costs of its production of Product X. Standards are 2 pounds of materials at $ 10 per pound and 5 hours of labor at a standard wage rate of $15. During July, ABC Company produced 1,000 Product X. ABC Company purchased and used totaled 2200 pounds materials at a total cost of $19,800. Payroll totaled $76,800 for 4,800 hours worked.
What is the direct materials price variance?
What is the direct materials quantity variance?
What is the direct labor rate variance?
What is the direct labor efficiency variance?
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Principles of Operations Management Sustainability and Supply Chain Management
Authors: Jay Heizer, Barry Render, Chuck Munson
10th edition
978-0134183954, 134183959, 134181980, 978-0134181981
