Question
Bridgeport, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly
Bridgeport, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly production, Bridgeport estimated 9,540 tybos would be produced in March. Bridgeport has established the following material and labor standards to produce one tybo:
Standard Quantity | Standard Price | ||||
---|---|---|---|---|---|
Direct materials | 2.5 pounds | $3 per pound | |||
Direct labor | 0.6 hours | $10 per hour |
During March 2022, the following activity was recorded by the company relating to the production of tybos:
1. | The company produced 9,120 units during the month. | ||
2. | A total of 24,160 pounds of materials were purchased at a cost of $66,440. | ||
3. | A total of 24,160 pounds of materials were used in production. | ||
4. | 5,130 hours of labor were incurred during the month at a total wage cost of $56,430. |
Calculate the following variances for March for Bridgeport, Inc. Identify whether each variance is favorable or unfavorable.
(a) | Materials Price Variance | $enter a dollar amount | select an option UnfavorableFavorableNot Applicable | |||
---|---|---|---|---|---|---|
(b) | Materials Quantity Variance | $enter a dollar amount | select an option Not ApplicableUnfavorableFavorable | |||
(c) | Labor Price Variance | $enter a dollar amount | select an option Not ApplicableUnfavorableFavorable | |||
(d) | Labor Quantity Variance | $enter a dollar amount | select an option FavorableNot ApplicableUnfavorable |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started