Question
Question 2 Chap. 10 Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production
Question 2 Chap. 10
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:
| Actual Costs | Standard Costs | |||||||
|---|---|---|---|---|---|---|---|---|
| Direct material | 17,550 | lbs. @ | $5.30 | 18000 | lbs. @ | $5.10 | ||
| Direct labor | 27,900 | hrs. @ | $8.40 | 27,000 | hrs. @ | $8.70 | ||
Determine the following variances:
Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.
| Materials Variances | |||||
|---|---|---|---|---|---|
| Actual cost: |
| ||||
| Split cost: |
| ||||
| Standard cost: |
| ||||
| a. Materials price |
| ||||
|
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| b. Materials efficiency |
|
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| Labor Variances | |||||
|---|---|---|---|---|---|
| Actual cost: |
| ||||
| Split cost: |
| ||||
| Standard cost: |
| ||||
| c. Labor rate |
| ||||
| d. Labor efficieny |
|
| |||
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
12th Canadian edition
