Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During June, Fraser Companys material purchases amounted to 5,000 pounds at a price of $8.2 per pound. Actual costs incurred in the production of 1,000
- During June, Fraser Companys material purchases amounted to 5,000 pounds at a price of $8.2 per pound. Actual costs incurred in the production of 1,000 units were as follows:
Direct labor: | $66,500 ($19 per hour) |
Direct material: | $36,900 ($8.20 per pound) |
The standards for one unit of Fraser Companys product are as follows:
Direct labor: Quantity, 2.1 labor hours per unit; Rate, $21 per labor hour |
Direct material: Quantity, 4.2 pounds per unit; Price, $8.50 per pound |
Required:
Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
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