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Cost standards for one unit of product no. C77: Direct material 3 pounds at $2.60 per pound $ 7.80 Direct labor 6 hours at $7.60
Cost standards for one unit of product no. C77: Direct material 3 pounds at $2.60 per pound $ 7.80 Direct labor 6 hours at $7.60 per hour 45.60 Actual results: Units produced 6,500 units Direct material purchased 26,100 pounds at $2.80 $ 73,080 Direct material used 19,200 pounds at $2.80 53,760 Direct labor 40,200 hours at $7.40 297,480
| Cost standards for one unit of product no. C77: | ||||
| Direct material | 3 pounds at $2.60 per pound | $ | 7.80 | |
| Direct labor | 6 hours at $7.60 per hour | 45.60 | ||
| Actual results: | ||||
| Units produced | 6,500 units | |||
| Direct material purchased | 26,100 pounds at $2.80 | $ | 73,080 | |
| Direct material used | 19,200 pounds at $2.80 | 53,760 | ||
| Direct labor | 40,200 hours at $7.40 | 297,480 | ||
Use the information to compute the following variances. The direct-labor efficiency variance is:
$8,002 F
$8,002 U
$9,120 F
$9,120 U
None are correct
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
