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A company's standard cost system requires 7,000 direct labor hours per month jg. qtler taproduce 3,500 units of handbags. The management has set 2 standard of using 4.3 yards of direct materials per unit of handbag. Information regarding standard costs is mentioned below: Particulars Total standard direct materials cost Total standard direct labor cost Total standard variable manufacturing overhead (based on direct labor-hours) Amount Particulars Total actual direct materials cost Total actual direct labor cost Total actual variable manufacturing overhead $54,250 $42,000 $18,200 During November, the company produced 3,600 wits of handbags using 6 960 direct labor hours. Actual cots recordad isthe month of Novemb are ss allows: Amount $64,800 $52,200 $24,360 The company used 21,600 yards of materials to produce 3,600 unis of handbags. Materials purchased during the month were used in production. Requirement: Determine the direct materials price variance and direct labor eficiency vaiance. (Rousd all he ntemuediste caleslations to 2 decimal places) Direct materials price variance is $9,504 U and direct labor efficiency variance is $1,440 U. Direct materials price variance is $3,640 U and direct labor efficiency variance is $240U. Direct materials price variance is $9,504 F and direct labor efficiency variance is $1,440 F. Direct materials price variance is $3640 F and direct labor efficiency variance is $240F.

A company's standard cost system requires 7,000 direct labor hours per month jg. qtler taproduce 3,500 units of handbags. The management has set 2 standard of using 4.3 yards of direct materials per unit of handbag. Information regarding standard costs is mentioned below: Particulars Total standard direct materials cost Total standard direct labor cost Total standard variable manufacturing overhead (based on direct labor-hours) Amount Particulars Total actual direct materials cost Total actual direct labor cost Total actual variable manufacturing overhead $54,250 $42,000 $18,200 During November, the company produced 3,600 wits of handbags using 6 960 direct labor hours. Actual cots recordad isthe month of Novemb are ss allows: Amount $64,800 $52,200 $24,360 The company used 21,600 yards of materials to produce 3,600 unis of handbags. Materials purchased during the month were used in production. Requirement: Determine the direct materials price variance and direct labor eficiency vaiance. (Rousd all he ntemuediste caleslations to 2 decimal places) Direct materials price variance is $9,504 U and direct labor efficiency variance is $1,440 U. Direct materials price variance is $3,640 U and direct labor efficiency variance is $240U. Direct materials price variance is $9,504 F and direct labor efficiency variance is $1,440 F. Direct materials price variance is $3640 F and direct labor efficiency variance is $240F.

FINANCIAL ACCOUNTING
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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A company's standard cost system requires 7,000 direct labor hours per month jg. qtler taproduce 3,500 units of handbags. The management has set 2 standard of using 4.3 yards of direct materials per unit of handbag. Information regarding standard costs is mentioned below: Particulars Total standard direct materials cost Total standard direct labor cost Total standard variable manufacturing overhead (based on direct labor-hours) Amount Particulars Total actual direct materials cost Total actual direct labor cost Total actual variable manufacturing overhead $54,250 $42,000 $18,200 During November, the company produced 3,600 wits of handbags using 6 960 direct labor hours. Actual cots recordad isthe month of Novemb are ss allows: Amount $64,800 $52,200 $24,360 The company used 21,600 yards of materials to produce 3,600 unis of handbags. Materials purchased during the month were used in production. Requirement: Determine the direct materials price variance and direct labor eficiency vaiance. (Rousd all he ntemuediste caleslations to 2 decimal places) Direct materials price variance is $9,504 U and direct labor efficiency variance is $1,440 U. Direct materials price variance is $3,640 U and direct labor efficiency variance is $240U. Direct materials price variance is $9,504 F and direct labor efficiency variance is $1,440 F. Direct materials price variance is $3640 F and direct labor efficiency variance is $240F.
Transcribed Image Text:A company's standard cost system requires 7,000 direct labor hours per month jg. qtler taproduce 3,500 units of handbags. The management has set 2 standard of using 4.3 yards of direct materials per unit of handbag. Information regarding standard costs is mentioned below: Particulars Total standard direct materials cost Total standard direct labor cost Total standard variable manufacturing overhead (based on direct labor-hours) Amount Particulars Total actual direct materials cost Total actual direct labor cost Total actual variable manufacturing overhead $54,250 $42,000 $18,200 During November, the company produced 3,600 wits of handbags using 6 960 direct labor hours. Actual cots recordad isthe month of Novemb are ss allows: Amount $64,800 $52,200 $24,360 The company used 21,600 yards of materials to produce 3,600 unis of handbags. Materials purchased during the month were used in production. Requirement: Determine the direct materials price variance and direct labor eficiency vaiance. (Rousd all he ntemuediste caleslations to 2 decimal places) Direct materials price variance is $9,504 U and direct labor efficiency variance is $1,440 U. Direct materials price variance is $3,640 U and direct labor efficiency variance is $240U. Direct materials price variance is $9,504 F and direct labor efficiency variance is $1,440 F. Direct materials price variance is $3640 F and direct labor efficiency variance is $240F.
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