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Analysis of materials and labor variances direct materials: Aluminum .2lb @ $.40 per lb = $.08 plastic 1.0 @ $.38 per lb =.38 production labor

Analysis of materials and labor variances

direct materials: Aluminum .2lb @ $.40 per lb = $.08 plastic 1.0 @ $.38 per lb =.38 production labor .3 hrs@$8.00 per hours =2.40 Factory overhead. 84 total $3.70

Manufactured 8,500 product and incurred these cost.

materials requisitioned for product: Aluminum 1900 lb @.40 per lb = 760 plastic reg grade 6000lb @.38 per lb 2280 low grade 3500 @.38 per lb 1330 production labor 2700 he @ 8.60 per hr 23,220 Factory overhead 7,140 cost charge to production 34,730

All materials are carried in inventory at standard prices . material purchases are as follows

Aluminum 1800, .48 per lb =864 plastic reg grade 3,000@ .50 per lb =1500 low grade 6000 lb @ .29 per lb =1740 Determine variable

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