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Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $1.00 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 | $1.00 |
Actual quantity purchased and used in production | 100 |
Standard quantity for units produced | 110 |
Actual labor rate per hour | $15 |
Standard labor rate per hour | $16 |
Actual hours | 210 |
Standard hours for units produced | 240 |
A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.
Material price variance | $ | |
Material quantity variance | $ | |
Labor rate variance | $ | |
Labor efficiency variance | $ |
B. What are some possible causes for this combination of favorable and unfavorable variances?
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