Cibolo Company has the following information available for March when 4,200 unit

Question

Cibolo Company has the following information available for March when 4,200 units were produced (round answers to teh nearest dollar).

a. Refer to Cibolo Company. What is the labor rate variance?

b. Refer to Cibolo Company. What is the labor efficiency variance?

c. Refer to Cibolo Company. What is the material price variance (based on quantity purchased)?

d. Refer to Cibolo Company. What is the material quantity variance?

Standards: Material 4.0 pounds per unit @ $5.25 per pound Labor 6.0 hours per unit @ $10.00 per hour Actual: Material purchased 17,500 pounds @ $5.10 Material used 16,700 pounds 25,500 direct labor hours @ $9.85 per hour

Explanation / Answer

Labour rate variance = (actual Rate - Standard Rate) * Actual Quantity (9.85-10)*25,500 = 3,825 F Labour Efficiency Variance = (Actual Hours - Standard Hours) * Standard Rate (25,500- (4,200*6))*10 = 3,000 U Material Price Variance = (Actual Price - Standard Price)*Actual Quantity (5.10-5.25)*17,500 = 2,625 F Material Quantity Variance = (Standard Quantity - Actual Quantity)*Standard Price ((4,200*4)-16,700)*5.25 = 525 F

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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