Question
Marley Corporation produces tables. The company uses a standard cost system and applies overhead based on direct labor hours. The company has established the following
Marley Corporation produces tables. The company uses a standard cost system and applies overhead based on direct labor hours. The company has established the following standard cost for one table:
Direct material (8 square feet @ $4.50 per sq ft) Direct labor (2.40 hours @ $12 per hour) Variable overhead (2.40 hours @ $2.20 per hour) Fixed overhead (2.40 hours @ $5.30 per hour) The static budget for June calls for a production level of 9,500 tables. The following information is available for the company's operations in June:
- 81,000 square feet of material were purchased at a total cost of $358,830.
- There was no beginning materials inventory. However, there were 5,250 square feet of material in ending inventory.
- 9,250 tables were manufactured.
- $268,140 in wages were paid for 21,800 hours of direct labor.
- Variable overhead incurred was $44,900.
- Fixed overhead incurred was $125,360
1.) What is the material price variance for Marley in June?
2.)What is the material usage variance for Marley in June?
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