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Please help with this accounting question. Will be sure to leave a review. Thank you in advance! 3. a P&G company produces many prodacts for
Please help with this accounting question. Will be sure to leave a review. Thank you in advance!
3. a P&G company produces many prodacts for housechold use.Company sells products to storekeepers as well as to customers. Detergent-D.X is one of the products of P&G. It is a cleaning prodtuct that is produced, packed in large boxes and then sold to customers and P&G uses a traditional standard costing system to control costs and has established the following materials, labor and overhead standards to produce one box of Detergent-DX: Direct materials; 1.5 pounds@$12 per pound: $18.00 Direct labor, 0.6 hours $24 per hour: $14.40 Variable manufacturing overhead; 0.6 hours@$5.00:$3.00 During August 2012, company produced and sold 3,000 boxes of Detergent-D.X. 8 pounds of direct materials were purchased@$1150 per pound. Out of these 6,000 pounds, 6,000 pounds were used during August. There was no inventory at the beginning of August. 1600 direct labor hours were recorded during the month at a cost of $40,000. The variable manufacturing overhead costs during August totaled $7,200. Required 1. Compute materials price variance and materials quantity variance. b. Compute direct labor rate variance and direct labor efficiency variance Step by Step Solution
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