Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The standards for one carton of Flavor Rite are: Direct materials 3.2 lbs. @ $6.00/lb.Direct labor 2.4 hrs. @ $10.00/hr. During the week ended May

The standards for one carton of Flavor Rite are:

Direct materials 3.2 lbs. @ $6.00/lb.Direct labor 2.4 hrs. @ $10.00/hr.

During the week ended May 17, the following activity took place:

  • 4,800 lbs. of raw material were purchased for inventory at a cost of $5.60 per pound;
  • 1,200 cartons of finished product were produced;
  • 4,020 lbs. of raw material were used;
  • 3,110 labor hours were worked at a total cost of $26,435.

Calculate each of the following variances:(a.)Raw materials purchase price variance.(b.)Raw materials usage variance.(c.)Direct labor rate variance.(d.)Direct labor efficiency variance.(e.)Explain the factors that most likely caused the variances computed above.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Psychology Applied To Teaching

Authors: Jack Snowman, Rick McCown

14th Edition

1285734556, 9781285734552

More Books

Students also viewed these Accounting questions

Question

Self-confidence

Answered: 1 week ago

Question

The number of people commenting on the statement

Answered: 1 week ago