Question
Ruby Company produces a chair that requires 3 yards of material per unit. The standard price of one yard of material is $11.20. During the
Ruby Company produces a chair that requires 3 yards of material per unit. The standard price of one yard of material is $11.20. During the month, 5,700 chairs were manufactured, using 16,900 yards at a cost of $11.87 per yard. Enter favorable variances as negative numbers.
| (a) | Determine the price variance. | $fill in the blank 1 | Favorable |
| (b) | Determine the quantity variance. | $fill in the blank 3 | Unfavorable |
| (c) | Determine the cost variance. | $fill in the blank 5 | Unfavorable |
Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $13.40 per hour. Production of 8,100 units required 15,880 hours at an hourly rate of $13.70 per hour. Enter favorable variances as negative numbers.
| (a) Determine the direct labor rate variance. | $fill in the blank 1 | |
| (b) Determine the direct labor time variance. | $fill in the blank 3 | |
| (c) Determine the cost variance. | $fill in the blank 5 |
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Audit Defense A Management Audit Readiness Guide
Authors: Ed Danter
1st Edition
3030924653, 978-3030924652
