Must show work Davis Company uses a standard cost accounting system. The followi

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Davis Company uses a standard cost accounting system. The following information is provided for your evaluation of the firm's performance during June 2016 99999? Actual Total Productiorn Direct Materials: units ctual materials purchased and used Actual material costs Material price variance 7,700 pounds $11,165 $385 favorable Standard quantity of direct materials per unit of production Material usage (or efficiency) variance 3 pounds S300 unfavorable Actual direct labor cost per hour Actual direct labor hour used Standard direct labor hours per unit of production Standard direct labor cost per hour S10.20 per hour 9,850 hours 4 hours S10 per hour

Explanation / Answer

a) Material price variance = (Standard price-actual price)actual quantity

     385 = (7700X-11165)

-7700X = -11550

X(standard price per pound) = 11550/7700 = 1.50 per pound

b) Material quantity variance = (Standard quantity-actual quantity)Standard price

-300 = (X*3-7700)*1.5

-300 = 4.5X-11550

-4.5X = -11250

X(actual production in units) = 11250/4.5 = 2500 Units

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