Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $14 Standard labor rate per hour $17 Actual hours 200 210 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as Material price variance Material quantity variance Labor rate variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Acme Inc. has the following information available:
Actual price paid for material
$0.90
Standard price for material
$0.80
Actual quantity purchased and used in production
100
Standard quantity for units produced
130
Actual labor rate per hour
$14
Standard labor rate per hour
$17
Actual hours
200
Standard hours for units produced
210
A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.
Material price variance
$4
Material quantity variance
Labor rate variance
Labor efficiency variance
B. What are some possible causes for this combination of favorable and unfavorable variances?
%24
%24
%24
Transcribed Image Text:Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $14 Standard labor rate per hour $17 Actual hours 200 Standard hours for units produced 210 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance $4 Material quantity variance Labor rate variance Labor efficiency variance B. What are some possible causes for this combination of favorable and unfavorable variances? %24 %24 %24
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