Question
at the beginning of the year, Craige company had the following standard cost sheet for one of its plastic products: direct material (5 lbs @
at the beginning of the year, Craige company had the following standard cost sheet for one of its plastic products:
direct material (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:
a. units produced: 410,000
b. materials purchased: 2,075,000 lbs @ 3.95
c. materials used: 2,100,000 pounds
d. direct labor: 825,000 hours @ 14.85
1. compute price and usage variances for material
2. compute the labor rate and labor efficiency variances, using both the formula and columnar approaches.
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