Question
Please help answer: >>> Answer the following questions about standard costs. A. What is the materials price variance? Materials price variance $ B. What is
Please help answer:
>>> Answer the following questions about standard costs.
A. What is the materials price variance? Materials price variance $
B. What is the materials quantity variance? Materials quantity variance $
C. What is the total materials variance? Total materials variance $
D. What is the labor price variance? Labor price variance $
E. What is the labor quantity variance?Labor quantity variance $
F. What is the total labor variance?Total labor variance $
G. Evaluate the variances for this company for January. What do these variances suggest to management?
H.What is the total overhead variance? Total overhead variance $
Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63 per lb. Plastic 12 oz. $1.00 per lb. Rubber 4 oz. 884 per lb. Direct labor Item Per unit Cost Labor 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $3.62 The January figures for purchasing, production, and labor are: The company purchased 228,200 pounds of raw materials in January at a cost of 79 a pound. Production used 228,200 pounds of raw materials to make 115,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.90 per hour. Overhead costs for January totaled $36,650 variable and $72,000 fixed
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