Question
Bobs TV Company budgeted the following cost standards for the current year: Direct materials = 1.40 pounds per unit @ $1.50 per pound Direct labor
Bobs TV Company budgeted the following cost standards for the current year:
Direct materials = 1.40 pounds per unit @ $1.50 per pound
Direct labor = 0.75 hours per unit @ $6 per hour
Actual production and costs were as follows:
Units produced = 2,800
Direct materials used = 4,500 lbs.
Direct materials purchased = 5,000 lbs. @ a cost of $5,850
Direct labor incurred = 2,000 hours at a cost of $13,000
a) The material price variance for materials purchased was?
b) The material efficiency (usage) variance was?
c) The labor price variance was
d) The labor efficiency (usage) variance was
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