Question
PQR Company budgeted to produce 5,000 units of a product. The standard cost per unit is $80, consisting of $40 for direct materials, $20 for
PQR Company budgeted to produce 5,000 units of a product. The standard cost per unit is $80, consisting of $40 for direct materials, $20 for direct labor, and $20 for overhead. During the month, 6,000 units were produced. Actual costs were $450,000 for direct materials, $240,000 for direct labor, and $210,000 for overhead. Calculate the direct materials, direct labor, and overhead variances.
PQR Company budgeted to produce 5,000 units of a product. The standard cost per unit is $80, consisting of $40 for direct materials, $20 for direct labor, and $20 for overhead. During the month, 6,000 units were produced. Actual costs were $450,000 for direct materials, $240,000 for direct labor, and $210,000 for overhead. Calculate the direct materials, direct labor, and overhead variances.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
18th edition
978-1259692406
