Question
The standards for one case of Peardrax are: During the week ended June 7, the following activity took place: 5,740 machine hours were worked; 22,600
The standards for one case of Peardrax are: During the week ended June 7, the following activity took place: 5,740 machine hours were worked; 22,600 lbs. of raw material were purchased for inventory at a total cost of $83,620; 2,700 cases of finished product were produced; 21,330 lbs. of raw material were used; 10,650 labor hours were worked at an average rate of $15.20 per hour; $27,552 actual variable overhead costs were incurred. Calculate each of the following variances: (a.) Price variance for raw materials purchased. (b.) Raw materials usage variance. (c.) Direct labor rate variance. (d.) Direct labor efficiency variance. (e.) Variable overhead spending variance. (f.) Variable overhead efficiency variance.
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