Levine Inc., which produces a single product, has prepared the following standar

Question

Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $2.50 per pound) $20 Direct labor (3 hours at $12.00 per hour) $36 During the month of April, the company manufactures 230 units and incurs the following actual costs. Direct materials purchased and used (1,900 pounds) $5,035 Direct labor (700 hours) $8,120 Compute the total, price, and quantity variances for materials and labor. Total materials variance $Entry field with incorrect answer now contains modified data Entry field with incorrect answer Materials price variance $Entry field with incorrect answer Entry field with incorrect answer Materials quantity variance $Entry field with incorrect answer Entry field with incorrect answer Total labor variance $Entry field with incorrect answer Entry field with incorrect answer Labor price variance $Entry field with incorrect answer Entry field with incorrect answer Labor quantity variance

Explanation / Answer

Standard Actual Units Per unit 230 Direct Material 8 pounds at $2.50 per pound 20 1900 pounds 5,035 2.65 per pound Direct Labour 3 hours at $12.00 per hour 36 700 hours 8,120 11.6 per hour Material Price Variance Actual Price Standard Price AP-SP Actual Quantity Variance (AP-SP)*Actual Qty 2.65 2.5 $0.15 1,900 285 U Material Usage Variance Actual Quantity Standard quantity AQ-SQ Standard Price Variance (AQ-SQ)*SP 1900 1840 60 $2.50 150 U Total Direct Material Variance is Actual Cost - Standard Cost Actual Cost Standard Cost 5035 1900*2.65 $4,600.00 1840*2.5 435 U Labor price Variance Actual rate Standard rate Actual hours AR-SR Variance (AR-SR)*AH $11.60 12 700 ($0.40) ($280.00) Labor quantity Variance Actual hours Standard Hours Standard rate SH-AH Variance (AH-SH)*SR 700 690 12 10 ($120.00) Labor Variance Actual hours Actual Rate Standard hours Standard Rate Variance (AH*AR - SH*SR) 700 11.6 690 12 $160.00

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.