Question
Ace Pharma Corporation makes a product with the following standard costs: Standard Standard Quantity Price or Inputs or hours Rate Direct Materials 4.8 grams $7.10
Ace Pharma Corporation makes a product with the following standard costs: | |||||
Standard | Standard | ||||
Quantity | Price or | ||||
Inputs | or hours | Rate | |||
Direct Materials | 4.8 | grams | $7.10 | per gram | |
Direct Labor | 0.6 | hours | $14.00 | per hour | |
Actual results in June: | |||||
Units produced | 4,200 | units | |||
Grams used in process | 21,830 | grams | |||
Direct Labor hours | 2,680 | hours | |||
Grams purchased | 24,100 | grams | |||
Price paid | $6.80 | per gram | |||
Direct labor rate | $14.60 | per hour | |||
Required: | |||||
A. Compute the materials quantity variance. | |||||
B. Compute the materials price variance. | |||||
C. Compute the labor efficiency variance. | |||||
D. Compute the direct labor rate variance. |
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