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Direct material cost variances- Practice 1 Product X has a standard direct material cost as follows. 10 kilograms of material Y at $10 per kilogram
Direct material cost variances- Practice 1 Product X has a standard direct material cost as follows. 10 kilograms of material Y at $10 per kilogram =$100 per unit of X. Last period, 1,000 units of X were manufactured, using 11,700 kilograms of material Y which cost $98,600. Required Calculate the following variances. (a) The direct material total variance (b) The direct material price variance (c) The direct material usage variance The standard direct labor cost of product X is as follows. 2 hours of grade Z labor at $5 per hour =$10 per unit of product X. During last year period, 1,000 units of product X were made, and the direct labor cost of grade Z labor was $8,900 for 2,300 hours of work. Required Calculate the following variances. (a) The direct labor total variance (b) The direct labor rate variance (c) The direct labor efficiency (productivity) variance
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