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Question #3 Expected production (units) 15,000 S...

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Question #3 Expected production (units) 15,000 Standard DML hours per unit 7 Standard DML rate per hour $26 Standard pounds of DM usage per unit 3 Standard DM price per pound $14 Actual Units produced 16,000 Pounds of DM purchased 53,000 Total cost of DM purchased $689,000 Pounds of DM used 50,000 DML hours worked 106,000 Total cost of DML $2,968,000 a) Calculate the following variances: Direct manufacturing labor rate variance Direct manufacturing labor usage variance Direct materials price variance (how we did it in the chat session) Direct materials usage variance b) Explain what each of the calculated variances imply about the firm?s operations. Be specific! Direct manufacturing labor rate variance Direct manufacturing labor usage variance Direct materials price variance Direct materials usage variance

 

Paper#6115 | Written in 18-Jul-2015

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