Fletcher Company collected the following data regarding production of one of its

Question

Fletcher Company collected the following data regarding production of one of its products Compute the direct labor efficiency variance. $19,125 favorable $80,250 favorable $81,125 favorable S19,125 unfavorable $80, 250 unfavorable A company provided the following direct materials cost information or Compute the cost variance $2, 500 Favorable $78,250 Favorable $78, 250 Unfavorable $80,750 Favorable $80,750 Unfavorable The following company information is available for March The direct materials price variance is $5,000 favorable $300 favorable Milltown Company Specializes in selling used cars. During the month the dealership sold 22 cars at an average price of $15,000 each The budget for the month was to sell 20 cars 81 an average price of $16,000.compute the dealership's price Variance for the month. $22,000 unfavorable S10.000 favorable $22,000 favorable $32 000 unfavorable $32,000 favorable

Explanation / Answer

Labor Efficiency Variance ( Standard Hours- Actual Hours) Standard Rate per Hour (40000*2-81500)*12.75 (-1500)*12.75 19125 Unfavourable The correct option is D. 19125 Unfavourable 6 Cost Variance Standard Cost- Actual Cost 810000-888250 78250 Unfavourable The correct option is C. $ 78250 Unfavourable 7 Direct Material Price Variance ( Standard Price- Actual Price) Actual Qty (53-55)2500 (2)*2500 $ 5000 Unfavourable 9 Sales Price Variance ( Actual Price- Standard price) * Actual Qty (15000-16000)*22 (1000)*22 22000 Unfavourable The correct option is A. $ 22000 Unfavourable

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