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Accounting homework

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Question;Question #3Expected production (units) 13,000Standard DML hours per unit 5Standard DML rate per hour $24Standard pounds of DM usage per unit 4Standard DM price per pound $12ActualUnits produced 12,000DML hours worked 62,000Total cost of DML $1,240,000Pounds of DM purchased 54,000Total cost of DM purchased $702,000Pounds of DM used 47,000a) Calculate the following variances:Direct manufacturing labor rate varianceDirect manufacturing labor usage varianceDirect materials price variance (how we did it in the chat session)Direct materials usage varianceb) Explain what each of the calculated variances imply about the firm?s operations. Be specific!Direct manufacturing labor rate varianceDirect manufacturing labor usage varianceDirect materials price varianceDirect materials usage variance

 

Paper#42067 | Written in 18-Jul-2015

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