10.00 polnts Regent Corp uses a standard cost system to account for the costs of

Question

10.00 polnts Regent Corp uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at 514 per pound, and labor standards are 4 hours of labor at a standard wage rate of $11. During July Regent Corp S6 10 003 5t urs sed and used totaled 10, 100 pounds at a total cost of $142,650 Payroli btaled $146,780 for 13,150 hours worked. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (ie, zero variance).) b. Calculate the direct materials quantity variance, (Indicate the effect of variance by selecting Favorable" Unfavorable or None for no elfect fi.e.. zero variancet)

Explanation / Answer

Material price variance = (14*10100-142650) = 1250 U

Material quantity variance = (3300*3-10100)*14 = 2800 U

Labour rate variance = (12*13150-146780) = 11020 F

Labour efficiency variance = (3300*4-13150)*12 = 600 F

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