The following information pertains to the standard costs and actual activity for

Question

The following information pertains to the standard costs and actual activity for Tyler Company for September: Standard cost per unit Direct materials 4 units of material A × $2.00 per unit 1 unit of material B × $3.00 per unit Direct labor 3 hours × $8.00 per hour Activity for September Materials purchased Material A 2,600 units × $2.05 per unit Material B 700 units × $3.10 per unit Materials used Material A 2,250 units Material B 605 units Direct labor used 1,480 hours × $8.30 per hour Production output 500 units There were no beginning direct materials inventories. (a) Determine the materials price and quantity variances. Material A Material B Materials price variance $Answer Answer $Answer Answer Materials quantity variance Answer Answer Answer Answer (b) Determine the labor rate and efficiency variances. Labor rate variance $Answer Answer Labor efficiency variance Answer Answer

Explanation / Answer

Material Price Variance AQ*(AP-SP) A 130 2600*(2.05-2) U B 70 700*(3.1-3) U Material Quantity Variance (AQ-SQ)*SP A 500 (2250-2000)*2 U B 315 (605-500)*3 U Labor Rate Variance AH*(AR-SR) 444 1480*(8.3-8) U Labor Efficiency Variance (AH-SH)*SR -160 (1480-1500)*8 F Standard quantity is arrived at by multiplying Production units to standard quantity per unit

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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