Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Smith Company has the following standards to produce one unit of finished product. Direct materials: 3 pounds at $4 per pound Direct Labor: 4 hours
Smith Company has the following standards to produce one unit of finished product.
Direct materials: 3 pounds at $4 per pound
Direct Labor: 4 hours at $20 per hour
The Smith Company produced 5,000 products during the period. Direct material used in production equals 14,800 lbs. The direct labor workers worked 20,300 hours.
Required: Calculate the direct material quantity variance and the direct labor efficiency variance. Indicate if each is favorable or unfavorable.
Please explain how you found your answers.
Smith Company has the following standards to produce one unit of finished product.
Direct materials: 3 pounds at $4 per pound
Direct Labor: 4 hours at $20 per hour
The Smith Company produced 5,000 products during the period. Direct material used in production equals 14,800 lbs. The direct labor workers worked 20,300 hours.
Required: Calculate the direct material quantity variance and the direct labor efficiency variance. Indicate if each is favorable or unfavorable.
Please explain how you found your answers.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started