Question
Java Gourmet Coffee Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note:
Java Gourmet Coffee
Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage),
Actual:
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| Direct Materials: |
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| Quantity of coffee beans: | 210,000 pounds |
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| Cost per pound: | $0.60 per pound |
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| Direct Labor: |
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| Direct labor rate: | $19.00 per hour |
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| Labor hours used: | 13,000 hours |
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| Variable Overhead: |
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| Actual costs: | $21,600 |
Standard:
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| Direct Materials: |
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| Quantity of coffee beans: | 200,000 pounds |
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| Cost per pound: | $0.50 per pound |
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| Direct Labor: |
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| Direct labor rate: | $20.00 per hour |
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| Labor hours to be used: | 0.05 hours per pound |
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| Variable overhead: | $.10 per pound |
- Refer to Java Gourmet Coffee. Calculate the direct labor efficiency variance.
| a. | $60,000 U |
| b. | $13,000 U |
| c. | $13,000 F |
| d. | $9,500 U |
- Refer to Java Gourmet Coffee. Calculate the variable manufacturing overhead variance.
| a. | $1,000 U |
| b. | $2,000 U |
| c. | $1,000 F |
| d. | $2,000 F |
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