Question
Say No to the Brush, LLC is a manufacturer of premium hairstyling products. Its most popular product, Its Real, is sold in 10 ounce bottles.
Say No to the Brush, LLC is a manufacturer of premium hairstyling products. Its most popular product, Its Real, is sold in 10 ounce bottles.
One bottle of Its Real is expected to use 8 ounces of direct material at a standard direct material cost of $1.75 per ounce. During the month, the company purchased 320,000 ounces of direct material at a total cost of $608,000. However, only 285,000 ounces of direct material were used in the monthly production of 38,000 bottles.
The expected direct labor cost per bottle of Its Real is $2. The company anticipates that 0.25 direct labor hours will be logged for each bottle produced. During the month, direct laborers worked 10,000 direct labor hours and were paid$7.56 per hour.
Given the above data, which of the following statements is correct?
A.
The Direct Material Price Variance is favorable.
B.
The direct labor hours allowed for the actual output level were greater than the direct labor hours logged.
C.
The total Direct Material Variance can be calculate by adding the Direct Material Price Variance and the Direct Material Quantity Variance.
D.
The actual direct labor rate was greater than the standard direct labor rate.
E.
The actual direct material unit input ratio was less than the standard direct material unit input ratio
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