Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chemical, Inc., has set up the following standards per finished unit for direct materials and direct manufacturing labor: Direct materials: 10 lbs. at $3 per

Chemical, Inc., has set up the following standards per finished unit for direct materials and direct manufacturing labor:

Direct materials: 10 lbs. at $3 per lb. = $30.00

Direct manufacturing labor: 0.5 hours at $20 per hour= $10.00

The number of finished units budgeted for March 2020 was 10,000; 9,810 units were actually produced.

Actual results in March 2020 were:

Direct materials: 98,073 lbs used

Direct manufacturing labor: 4,900 total hours at a total cost of $102,900

Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchases amounted to 100,000 lbs. at a total cost of $310,000.

Compute the March 2020 price and efficiency variances of direct materials and direct manufacturing labor.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 1

Authors: Frank Wood, Alan Sangster

10th Edition

9780273681496

More Books

Students also viewed these Accounting questions

Question

3. What do you think is your most common unconscious bias?

Answered: 1 week ago