Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 American Sporty Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs
Question 2 American Sporty Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 20x7 for each baseball bat: Standard quantity per unit Standard price Unit standard cost Direct material 2 kg (Aluminium) $4 per kg $8 Direct labour 12 hour $10 per hour $5 In 20x7, the company planned to produce 60,000 baseball bats at a level of 30,000 hours of direct labor. Actual results for 20x7 are presented below: 1. Direct materials purchases were 123,000 kgs of aluminum which cost $516,600. 2. Direct materials used were 110,000 kgs of aluminum. 3. Direct labor costs were $284,210 for 29,300 direct labor hours actually worked. 4. Actual production was 57,000 baseball bats. Required: (a) Compute the following variances: 1. Direct materials price. 2. Direct materials usage. 3. Direct labor rate. 4. Direct labor efficiency. (b) State a possible reason for each of the variances computed in part (a)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started