Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Gamal Company is a manufacturer of candles. The standard direct materials quantity required to produce one large candle is 1 Kilo at a cost of
Gamal Company is a manufacturer of candles. The standard direct materials quantity required to produce one large candle is 1 Kilo at a cost of $5 per Kilo. During November, 7,200 large candles were produced using 7,500 Kilos of direct materials which cost $45,000. Every candle requires 2 direct labor hours at a standard cost of $3 per direct labor hour. At the end of November, an examination of the labor cost records showed that the company used 15,000 direct labor hours (DLHr) at a cost of $4 per hour. Required: 1. Compute the Direct Material Variances(Cost, Efficiency, total) - Please show your answer 2. Compute the Direct labor Variances(Cost, Efficiency, total) - Please show your answer
Gamal Company is a manufacturer of candles. The standard direct materials quantity required to produce one large candle is 1 Kilo at a cost of $5 per Kilo. During November, 7,200 large candles were produced using 7,500 Kilos of direct materials which cost $45,000. Every candle requires 2 direct labor hours at a standard cost of $3 per direct labor hour.
At the end of November, an examination of the labor cost records showed that the company used 15,000 direct labor hours (DLHr) at a cost of $4 per hour.
Required:
1. Compute the Direct Material Variances(Cost, Efficiency, total) - Please show your answer
2. Compute the Direct labor Variances(Cost, Efficiency, total) - Please show your answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started