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 CostsStandard CostsDirect material4,200lbs. @$4.904,000lbs. @$5.20Direct labor5,700hrs. @$9.306,000hrs. @$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 VariancesActual cost:Answer
Split cost:Answer
Standard cost:Answer
a. Materials priceAnswer
Answer
F
U
b. Materials efficiencyAnswer
Answer
F
U
Labor VariancesActual cost:Answer
Split cost:Answer
Standard cost:Answer
c. Labor rateAnswer
Answer
F
U
d. Labor efficienyAnswer
Answer
F
U
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Debra Good
13th Canadian edition
134616316, 134166698, 9780134632407 , 978-0134166698
