Question
Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $1.10 Actual quantity purchased and used in production
Acme Inc. has the following information available:
| Actual price paid for material | $0.90 |
| Standard price for material | $1.10 |
| Actual quantity purchased and used in production | 110 |
| Standard quantity for units produced | 140 |
| Actual labor rate per hour | $16 |
| Standard labor rate per hour | $17 |
| Actual hours | 190 |
| Standard hours for units produced | 220 |
A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.
| Material price variance | $fill in the blank 1 | |
| Material quantity variance | $fill in the blank 3 | |
| Labor rate variance | $fill in the blank 5 | |
| Labor efficiency variance | $fill in the blank 7 |
B. What are some possible causes for this combination of favorable and unfavorable variances?
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Cost Accounting A Managerial Emphasis
Authors: Madhav, Charles, Srikant
15th Edition
933254221X, 978-9332542211
