Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Albright Company uses standard costing and has established the following standards for its single product: Direct Materials Direct Labour Variable Manufacturing Overhead 2 litres
The Albright Company uses standard costing and has established the following standards for its single product: Direct Materials Direct Labour Variable Manufacturing Overhead 2 litres at $3 per litre 0.5 hours at $8 per hour 0.5 hours at $2 per hour During November, the company made 4,000 units and incurred the following costs: Direct Materials Purchased Direct Materials Used Direct Labour Used Actual Variable Manufacturing Overhead 8,100 litres at $3.10 per litre 7,600 litres 2,200 hours at $8.25 per hour $4,175 The company applies variable manufacturing overhead to products on the basis of direct labour hours. A) 1. What was the materials price variance for November? $810 favourable. B) $810 unfavourable, C) $2,310 favourable. $2,310 unfavourable, 2. What was the materials quantity variance for November? A) $300 unfavourable, B) $1,200 favourable. $1,200 unfavourable, $1,500 favourable. 3. What was the labour rate variance for November? A) $550 unfavourable, $1,050 unfavourable, C) $2,150 favourable. $2,150 unfavourable. B)
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