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Flexible Budget Homework Reflections, Inc. is a company that manufactures premium car wax. The company uses a standard cost system. From the accounting records of
Flexible Budget Homework Reflections, Inc. is a company that manufactures premium car wax. The company uses a standard cost system. From the accounting records of the firm, you obtain the following information: Standard material cost $3.90 per pound Standard direct labor cost $6.00 per hour Standard pounds per unit 5 Standard labor hours per unit 3 Material purchased and used 39,500 pounds Direct labor used 25,000 hours Actual material cost $4.05 per pound Actual labor cost $6.95 per hour Number of units actually produced 8,000 units Number of units planned 10,000 units Calculate each of the following and state whether the variance is favorable or unfavorable:
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