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 | 14,700 | lbs. @ | $4.90 | 14,000 | lbs. @ | $5.20 | ||
| Direct labor | 19,950 | hrs. @ | $9.30 | 21,000 | hrs. @ | $9.50 | ||
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 |
Please answer all parts of the question.
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Financial Analysis
Authors: Paul Rodgers
4th Edition
075068674X, 978-0750686747
