Complete as fast as you can please! SECOND PICTURE IS JUST TO SHOW WHAT OPTIONS
ID: 2598747 • Letter: C
Question
Complete as fast as you can please!
SECOND PICTURE IS JUST TO SHOW WHAT OPTIONS YOU HAVE FOR RIGHT SIDE
ent MESSAGE MY INS Question! Levine incul which produces a sindle product, has prepared the follewing standard cost sheet for one unit of the product. Direct materiounds at $3.70per pound) 39.30 $55.00 Direct iabon hours at $11.00 per hour) Dunng thel month of April, the company manufactures 940lunite and incurs the following actual costs Direct materials purchased and used (1 500 pounds) Directilabor (11730 hoursy compute the total price, and quantity variances for materials and labon $51850 $18 68 rota als varlance Materials price variance… ttabor prigevariance instructo ce tiExplanation / Answer
Materials price variance
= Actual cost of materials used - Standard cost of materials used
= $5,850 - ($3.70 x 1,500 pounds)
= $300 Unfavorable
Materials quantity variance
= Standard cost of materials used - Standard cost of materials that should have been used per standards
= ($3.70 x 1,500) - ($3.70 x 9 pounds x 340 units)
= $5,772 Favorable
Total materials variance
= Materials price variance + Materials quantity variance
= $300 Unfavorable + $5,772 Favorable
= $5,472 Favorable
Labor price variance
= Actual cost of labor used - Standard cost of labor used
= $18,684 - ($11 x 1,730 hours)
= $350 Favorable
Labor quantity variance
= Standard cost of labor used - Standard cost of labor that should have been used per standards
= ($11 x 1,730) - ($11 x 5 hours x 340 units)
= $330 Unfavorable
Total labor variance
= Labor price variance + Labor quantity variance
= $350 Favorable + 330 Unfavorable
= $20 Favorable
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