Question
The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual Costs
The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:
| Actual Costs | Standard Costs | |||||||
|---|---|---|---|---|---|---|---|---|
| Direct material | 9,750 | lbs. @ | $5.30 | 10,000 | lbs. @ | $5.10 | ||
| Direct labor | 15,500 | hrs. @ | $8.40 | 15,000 | hrs. @ | $8.70 | ||
Determine the following variances:
Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.
| Materials Variances | ||
|---|---|---|
| Actual cost: | Answer
| |
| Split cost: | Answer
| |
| Standard cost: | Answer
| |
| a. Materials price | Answer
| AnswerFU
|
| b. Materials efficiency | Answer
| AnswerFU
|
| Labor Variances | ||
|---|---|---|
| Actual cost: | Answer
| |
| Split cost: | Answer
| |
| Standard cost: | Answer
| |
| c. Labor rate | Answer
| AnswerFU
|
| d. Labor efficieny | Answer
| AnswerFU
|
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Auditing Business Continuity Global Best Practices
Authors: Rolf Von Roessing
1st Edition
1931332150, 978-1931332156
