Question
At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @
At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) $20.00 Direct labor (2 hrs. @ $15.00) 30.00 Standard prime cost per unit $50.00 The actual results for the year are as follows: Units produced: 420,000. Materials purchased: 2,940,000 pounds @ $5.80. Materials used: 2,604,000 pounds. Direct labor: 756,000 hours @ $12.36.
Required:
1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.
Material price variance | 5292000 | Unfavorable |
Material usage variance | $fill in the blank 3 | Unfavorable |
2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.
Labor rate variance | $fill in the blank 5 | Favorable |
Labor efficiency variance | $fill in the blank 7 | Favorable |
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