A certain department produced 16,000 units of a product that had a standard materials cost of two pounds at $1.70 per pound and a standard labor cost of two hours per unit $9.40 per hour. Actual materials purchased and used amounted to 32,200 pounds at $1.60 per pound, while actual direct labor consisted of 32,200 hours at a total labor cost $305,900. a. Compute the total materials variance, the materials price variance, and the materials usage variance.

A certain department produced 16,000 units of a product that had a standard materials cost of two pounds at $1.70 per pound and a standard labor cost of two hours per unit $9.40 per hour. Actual materials purchased and used amounted to 32,200 pounds at $1.60 per pound, while actual direct labor consisted of 32,200 hours at a total labor cost $305,900. a. Compute the total materials variance, the materials price variance, and the materials usage variance.

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Description: A certain department produced 16,000 units of a product that had a standard materials cost of two pounds at $1.70 per pound and a standard labor cost of two hours per unit at$9.40 per hour. Actual materials purchased and used amounted to 32,200 poun

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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