Exercise 15-8 The following direct materials and direct labor data pertain to th
ID: 2510317 • Letter: E
Question
Exercise 15-8 The following direct materials and direct labor data pertain to the operations of Concord Company for the month of August Costs $14 per hour Actual labor rate Actual materials price Standard labor rate Standard materials price $270 per ton $13.50 per hour $274 per ton Quantities Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 1,200 tons 4,980 hours 1,180 tons Compute the total, price, and quantity variances for materials and labor. Total materials variance Materials price variance Materials quantity variance s Total labor variance Labor price variance Labor quantity variance Click if you would like to Show Work for this question:Explanation / Answer
Total Material Cost Variance = Standard Cost - Actual Cost = 274 x 1180 - 270x 1200 = 3060 - 4488 = 680 Unfav Direct Material Price Variance = (Standard Rate - Actual Rate) x Actual Quantity = ( 274 - 270 ) x 1200 = 4800 Fav Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Rate = ( 1180 - 1200 ) x 274 = 5480 Unfav Total Labor Cost Variance = Standard Cost - Actual Cost = 13.50 x 4980 - 14 x 4900 = 3060 - 4488 = 1370 Unfav Direct Labor Rate Variance = (Standard Rate - Actual Rate) x Actual Hours = [13.50 - 14.00] x 4900 = 2450 Unfav Direct Labor Efficiency Variance = (Standard Hours- Actual Hours) x Standard Rate = [4980 - 4900] x 13.5 = 1080 Fav
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.