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The data below relate to a product of Company....

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The data below relate to a product of Company. Standard costs: Material: 2 pounds at $6 per pound = $12 per unit Labor: 3 hours at $15 per hour = $45 per unit Budgeted production for the year is 4,000 units Actual results were: Production: 3,600 units Material purchases: 8,000 pounds at $46,400 Labor: 10,360 hours at $160,580 Material used in production: 7,300 pounds Requirements: Compute the following: (Indicate whether the variance is favorable or unfavorable.) Direct material price variance Direct material quantity variance Direct labor rate variance Direct labor efficiency variance,okay great:),cool!,Hi, I just checked the answers and I did not get what you got. The only thing I got that was the same was for the fist answer which was for the direct material price variance of $(1600) Favorable. For the second answer, I got the standard quantity to be 8000 from (2 pounds * budgeted 4000 units) not 7200 which was what you had calculated. This also poses an issue with the fourth part which also requires a standard hours part where I multiplied 4000 * 3hours = 12,000 standard hours - so I ended up getting (24,600) Favorable for the Direct Labor efficiency variance. Am I wrong?,Hi, I just checked the answers and I did not get what you got. The only thing I got that was the same was for the fist answer which was for the direct material price variance of $(1600) Favorable. For the second answer, I got the standard quantity to be 8000 from (2 pounds * budgeted 4000 units) not 7200 which was what you had calculated. This also poses an issue with the fourth part which also requires a standard hours part where I multiplied 4000 * 3hours = 12,000 standard hours - so I ended up getting (24,600) Favorable for the Direct Labor efficiency variance. Am I wrong?,Hi, I just checked the answers and I did not get what you got. The only thing I got that was the same was for the fist answer which was for the direct material price variance of $(1600) Favorable. For the second answer, I got the standard quantity to be 8000 from (2 pounds * budgeted 4000 units) not 7200 which was what you had calculated. This also poses an issue with the fourth part which also requires a standard hours part where I multiplied 4000 * 3hours = 12,000 standard hours - so I ended up getting (24,600) Favorable for the Direct Labor efficiency variance. Am I wrong?,okay - thank you!

 

Paper#13536 | Written in 18-Jul-2015

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