Question
Exercise 24-07 (Video) Pharoah Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials
Exercise 24-07 (Video)
Pharoah Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.
Direct materials (6 pounds at $1.60 per pound) | $9.60 | |
Direct labor (6 hours at $10.00 per hour) | $60.00 |
During the month of April, the company manufactures 310 units and incurs the following actual costs.
Direct materials purchased and used (2,400 pounds) | $4,080 | |
Direct labor (1,880 hours) | $18,612 |
Compute the total, price, and quantity variances for materials and labor.
Total materials variance | $ | Neither favorable nor unfavorableUnfavorableFavorable | ||
Materials price variance | $ | Neither favorable nor unfavorableFavorableUnfavorable | ||
Materials quantity variance | $ | UnfavorableNeither favorable nor unfavorableFavorable | ||
Total labor variance | $ | Neither favorable nor unfavorableUnfavorableFavorable | ||
Labor price variance | $ | Neither favorable nor unfavorableFavorableUnfavorable | ||
Labor quantity variance | $ | FavorableNeither favorable nor unfavorableUnfavorable |
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