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The following actual data was given for the firm 8000 pounds of materials were purchased costing $40,000 Four hundred units were purchased requiring 900 labor
The following actual data was given for the firm
8000 pounds of materials were purchased costing $40,000
Four hundred units were purchased requiring 900 labor hours costing $4500 and 1000 pounds of materials. The standard for labor is 2 hours per unit with a wage rate of $3 per hour and for materials 2 pounds per units at a price of $4 per unit.
Calculate
(a) all labor variances
(b) all material variances
(c) write an analysis of how you would explain to management the meaning of the variances you calculated.
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