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Amazon.com Inc. provides the following information for the production of a product: Item Standard Cost per Unit Actual Cost per Unit Standard Quantity Actual Quantity
Amazon.com Inc. provides the following information for the production of a product:
| Item | Standard Cost per Unit | Actual Cost per Unit | Standard Quantity | Actual Quantity |
|---|---|---|---|---|
| Direct Materials | $5 | $5.50 | 2 lbs | 2.1 lbs |
| Direct Labor | $10 | $11 | 1 hour | 1.2 hours |
Required:
- Calculate the material price variance.
- Compute the material quantity variance.
- Determine the labor rate variance.
- Calculate the labor efficiency variance.
- Prepare a variance analysis report.
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
2nd Edition
0078110823, 9780078110825
