Question
Kona Inc. manufactures sea kayaks. The standard cost of direct materials and direct manufacturing labour is $159 per kayak. This includes 18 pounds of direct
Kona Inc. manufactures sea kayaks. The standard cost of direct materials and direct manufacturing labour is $159 per kayak. This includes 18 pounds of direct materials, at the budgeted price of $3.00 per pound and 4.25 hours of direct manufacturing labour, at the budgeted rate of $15 per hour. Following are additional data for the current month:
Units completed 6,000 kayaks
Direct materials purchased: 115,000 pounds
Cost of direct material purchases: $300,500
Actual direct manufacturing labour-hours: 27,000 hours
Actual direct-labour costs: $379,000
Direct materials efficiency variance: $10,250 F
There are no beginning inventories.
Calculate the direct manufacturing labour price variance.
Question 4 options:
| |||
| |||
| |||
|
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