Question
Materials and labor variances: Standards per Batch Actual Total Materials 1 Pound at $3.50 per Pound 59,000 Pounds Labor. 1.5 Hours at $4.00 per Hour
Materials and labor variances:
| Standards per Batch | Actual Total
|
Materials | 1 Pound at $3.50 per Pound | 59,000 Pounds |
Labor. | 1.5 Hours at $4.00 per Hour | 82,000 Hours |
Batches Produced |
| 58,000 Batches |
The Chocolate Factory presents the following data for September. During the month, the firm purchased 59,000 pounds of materials for $216,500. Wages earned were $330,000.
A. Compute the direct material and direct labor price and efficiency variances.
B. Based on the information for the company, write a short report explaining the cause of the variances that you computed.
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