Question
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:
| Actual Costs | Standard Costs | |||||||
|---|---|---|---|---|---|---|---|---|
| Direct material | 11,700 | lbs. @ | $5.30 | 12,000 | lbs. @ | $5.10 | ||
| Direct labor | 18,600 | hrs. @ | $8.40 | 18,000 | hrs. @ | $8.70 | ||
Determine the following variances:
Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.
| Materials Variances | ||
|---|---|---|
| Actual cost: | $Answer | |
| Split cost: | $Answer | |
| Standard cost: | $Answer | |
| a. Materials price | $Answer | AnswerFU |
| b. Materials efficiency | $Answer | AnswerFU |
| Labor Variances | ||
|---|---|---|
| Actual cost: | $Answer | |
| Split cost: | $Answer | |
| Standard cost: | $Answer | |
| c. Labor rate | $Answer | AnswerFU |
| d. Labor efficieny | $Answer | AnswerFU |
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Hong Kong Auditing Economic Theory And Practice
Authors: Ferdinand A Gul
2nd Edition
9629371413, 978-9629371418
