Question
Bottoms up company manufactures recyclable bottles. Consider the following selected data: direct materials direct labor standards per bottle 450 oz of input at $0.015 /oz
Bottoms up company manufactures recyclable bottles. Consider the following selected data: direct materials direct labor standards per bottle 450 oz of input at $0.015 /oz 0.075 labor hours at $21/ labor hour actual performance: bottle produced and sold 17,000 units direct materials purchased and used 7,150,000 oz labor hours used 1,400 labor hours total direct materials cost $100,100 total direct labor costs $27,650 required: a) calculate price variance for direct materials b) provide a possible reason for favorable or unfavorable price variance for direct materials c) calculate quantity variance for direct materials. Chapter8 variance Analysis and standard costing 221 d) provide a possible reason for favorable or unfavorable quantity Variance for Direct Materials e) calculate labor rate Variance. f) provide a possible reason for unfavorable or favorable Direct labor g) calculate efficiency variance for direct labor h) provide a possible reason for unfavorable or favorable efficiency Variance for Direct labor
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