Question
The following data pertain to Nell Company's operations for June: Standard quantity of materials per unit of product..... 5 pounds Standard cost of materials per
The following data pertain to Nell Company's operations for June:
| Standard quantity of materials per unit of product..... | 5 pounds |
| Standard cost of materials per pound......................... | $0.20 |
| Standard direct labor hours......................................... | 4,000 hours |
| Standard wage rate per hour....................................... | $7.00 |
| Actual output.............................................................. | 100,000 units |
| Materials purchased..................................................... | 100,000 pounds |
| Actual cost of materials purchased per pound............ | $0.17 |
| Materials used............................................................. | 60,000 pounds |
| Actual direct labor hours required............................... | 3,900 hours |
| Actual direct labor cost per hour................................. | $7.20 |
The materials price variance is recognized when materials are purchased.
1. Nell's materials price variance for June was:
$3,000 favorable |
$2,000 unfavorable |
$2,000 favorable |
$3,000 unfavorable 2. Nell's labor efficiency variance for June was:
|
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