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-   -   Variance computing (https://www.askmehelpdesk.com/showthread.php?t=546786)

  • Jan 22, 2011, 12:47 PM
    fjnz614
    Variance computing
    A company using standard cost systems in accounting for the manufacturing costs of its only product. The standard cost information for materials and labor is as follows:
    Direct Materials: 5 pounds at $8... $40
    Direct labor: 4 hours at $8... $32

    During April of its first year of operation, the company completed 2300 units and had the following materials and labor variances:
    Materials price variance... $1400 F
    Materials quantity variance... $1800 F
    Labor rate variance... $2350 U
    Labor efficiency variance... $1600 U

    There is no work in process inventory at the beginning or end of April.

    Compute the following amounts:
    1. The amount of materials and labor debited to work in process inventory during April
    2. The pounds of materials used in production
    3. The actual hours of labor used in production
    4. The actual labor rate per hour
  • Jan 22, 2011, 12:52 PM
    Just Looking

    Please read the following.

    https://www.askmehelpdesk.com/financ...-b-u-font.html

    We won't do your homework for you. The way to approach this problem is to start with the formulas for the variances (Materials price variance, Materials quantity variance, Labor rate variance, Labor efficiency variance). Plug in the numbers that are given. If you'll start with that, you may be able to solve this on your own. If you can't, post what you have so far. We can check it and help you from there. Thanks.

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