Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct materials: 2 pounds x $50 per pound $100.00 Direct labour: 1.5 hours x $20 per hour 30.00 Variable overhead: 1.5 hours x $10 per

image text in transcribed
Direct materials: 2 pounds x $50 per pound $100.00 Direct labour: 1.5 hours x $20 per hour 30.00 Variable overhead: 1.5 hours x $10 per hour 15.00 Total standard variable cost per unit $145.00 The company records materials price variances at the time of purchase. The following activities occurred during the month of February: Materials purchased 3,000 pounds at $48 per pound Materials used 2,100 pounds Units produced 1,000 units Direct labour 1,400 hours at $25 per hour Calculate the following variances and indicate if they are favourable (F) or adverse (A): Material price [2.5 marks] Material usage [3 marks] 11. Total material [1 mark] III. [2.5 marks] IV. Labour rate [3 marks] V. Labour efficiency [1 mark] VI. Total labour

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

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions

Question

4. What means will you use to achieve these values?

Answered: 1 week ago