Question
The Albright Company uses standard costing and has established the following standards for its single product: Direct materials 2 litres at $3 per litre Direct
The Albright Company uses standard costing and has established the following standards
for its single product:
Direct materials 2 litres at $3 per litre
Direct labour 0.5 hours at $8 per hour
Variable manuf. 0.5 hours at $2 per hour
overhead
During November, the
company made 4,000
units and incurred the
following costs:
Direct materials
purchased
8,100 litres at $3.10 per
litre
Direct materials used 7,600 litres
Direct labour used 2,200 hours at $8.25 per
hour
Actual variable manuf.
overhead $4,175
The company applies variable manufacturing overhead to products on the basis of direct
labour hours.
1.) The material price variance for November is? And how do you know if it is favourable or unfavorable?
2.)The material quantity variance for November is? And how do you know if it is favourable or unfavorable?
show your work in detail.
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