Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Noplastic company produces paper bags for Grocery stores. The Company uses standard costing system to monitor and control costs. The standards for materials and labour

image text in transcribed

Noplastic company produces paper bags for Grocery stores. The Company uses standard costing system to monitor and control costs. The standards for materials and labour costs to manufacture 1 bag are as follows: Direct materials: 7.2 lbs. @ $5 per lb. $36.00 Direct labour: 0.4 hours @ $20 per hour $8.00 During the last month, Noplastic produced 2,500 large bags. Twenty thousand (20,000) lbs. of direct materials were purchased @ $4.80 per lb. There was no direct materials inventory at the beginning and end of the month. Nine hundred (900) direct labour hours were recorded @ $24 per hour. Required: 1. Compute direct materials price and quantity variance. 2. Compute direct labour rate and efficiency variance. 3. What is the total materials variance? 4. What is the total labour variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, William B. Tayler

16th Edition

0357715225, 9780357715222

More Books

Students also viewed these Accounting questions

Question

which accounts normally have debit balances

Answered: 1 week ago