Question
Use the following data to analyze the companys operations using variances. Budgeted data: Direct materials 2 pounds per unit at $5 per pound Direct labor
Use the following data to analyze the companys operations using variances.
Budgeted data:
Direct materials2 pounds per unit at $5 per pound
Direct labor hour per unit at $12 per hour
Production100,000 units
Actual results:
Direct materials300,000 pounds purchased at $4.50 per pound,
220,000 pounds used in production
Direct labor48,000 hours used at $12.50 per hour
Production105,000 units
Direct materials price variance:
Direct materials usage variance:
Direct materials inventory variance:
Direct labor price variance:
Direct labor usage variance:
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