Ask Experts Questions for FREE Help !
Ask
    fjnz614's Avatar
    fjnz614 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 22, 2011, 12:47 PM
    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
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
    Ultra Member
     
    #2

    Jan 22, 2011, 12:52 PM

    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.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Variance [ 0 Answers ]

The following information is available from Hindustan Company records for the month of September, 2010 Material purchased: 20,000 pieces (Rs.) 80,000 Material consumed:16,000 pieces (Rs.) Actual wages paid or 4,500 hours (Rs.) 2,25,000 Factory overheads incurred (Rs.) 44,000 Factory overheads...

Labor efficiency variance, variable overhead rate variance, variable overhead efficie [ 1 Answers ]

Becton Labs, Inc. produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price or Rate Standard Cost ...

Formulae of variance [ 1 Answers ]

Calculate the variance and the standard deviation of the following classified data. 8.2, 8.3, 8.4, 8.5, 8.6, 8.7, 8.8, 8.9, 9.0, 9.1, 9.2, with their respective frequencies of 2, 6, 8, 1, 17, 17, 24, 18, 13, 10, 4,


View more questions Search