Note: Questions 2 and 3 are incorrect. Exercise 23-9 (Part Level Submission) You

Question

Note: Questions 2 and 3 are incorrect.

Exercise 23-9 (Part Level Submission) You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations Direct materials (5 pounds at $3 per pound) Direct labor (0.90 hours at $6) Variable overhead (0.90 hours at $4 per hour) Fixed overhead (0.90 hours at $9 per hour) Standard Cost Card $15.00 5.40 3.60 8.10 $32.10 The following is a variance report for the most recent period of operations Variances Costs Total Standard Cost Price Quantity $9,800 U 7,200 U Direct materials $405,000 $8,170 F Direct labor 145,800 4,900 U

Explanation / Answer

2 Labor quantity variance = SR*(AH-SH) 7200 = 6*(AH-145800/6) 7200 = 6*(AH-24300) 1200 = AH-24300 AH = 25500 Actual direct labor hours = 25500 3 Labor price variance = AH*(AR-SR) 4900 = 25500*(AR-6) AR = 6+0.19 = 6.19 Actual rate = $6.19

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