Question
Use the following standard cost and actual information to calculate the cost of 1 gallon of ice cream to answer the questions below. Product Gallon
Use the following standard cost and actual information to calculate the cost of 1 gallon of ice cream to answer the questions below.
Product Gallon of ice Cream
Manufacturing cost information Standard Quantity x Standard Cost per unit= Cost Summary
Direct Materials 6 quarts $1.00 per quart $6.00
Direct Labor 3 minutes $38.00 per hour $1.90
Total Direct Costs $7.90
Actual costs incurred to make 50 gallons of ice cream:
- 275 quarts of cream at $1.05 per quart
- 165 minutes of labor at $37.00 per hour (60 minutes = 1 hour)
(a) Calculate the material price variance
(b) Calculate the material quantity variance
(c) Calculate the labor rate variance
(d) Calculate the labor efficiency (hourly) variance
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