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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Accounting For Managers And Entrepreneurs
Authors: Charles T. Horngren
8th Edition
1269778684, 9781269778688
