Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The following information describes production activities of the providence comp

ID: 2505069 • Letter: T

Question

The following information describes production activities of the providence company.

Raw materials used---------------------------------------16,000 lbs. at $4.05 per lb.

Factory payroll----------------------------------------------5,545 hours for a total of $72,085

30,000 units were completed during the year

Budgeted standards for each unit produced:

0.5 lb. of raw material at $4.5 per lb.

10 minutes of direct labor at $12.50 per hour

Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable

Explanation / Answer

DM Price Variance = ( SP ? AP )