Question
The Brown Fish co. is producing a product X200. The standards call for 5.0 meters of a raw material that costs $19.10 per meter. Last
The Brown Fish co. is producing a product X200. The standards call for 5.0 meters of a raw material that costs $19.10 per meter. Last month, 2,700 meters of the raw material were purchased for $51,570. The actual output of the month was 460 units. A total of 200 meters of the raw material left unused during the month. The standards for labors call for 8.4 direct labor-hours per unit at $12.00 per direct labor-hour. Last month, 3,800 direct labor-hours worked for at a total direct labor wage cost of $41,020, Required:
a) What was the materials price and quantity variance for the month? Interpret the values.
b) What was the labor rate and efficiency variance for the month? Interpret the values.
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