Altanta Industries manufactures gadgets. In the month of March, the company incurredthe following:ActualGadgets produced10,563Direct Materials20,000purchasedpounds19,000Direct Materials usedpoundsCost of Direct$40,000Materials purchased2,463Direct Labor Hours.hoursTotal Direct Labor Cost $36,566The standards for production are:Direct Materials per gadgetCost of Direct Materials perpoundDirect Labor per gadgetStandards3 lbs per gadget$5 per pound18 minutes pergadget (.30 hours)Direct Labor Cost per gadget$6 per gadgetWhat is the Direct Labor Rate Variance?Enter a favorable variance as a positive number. Enter an unfavorable variance as anegative number.

Actual rate of direct labor = Actual direct labor cost / Actual direct labor hoursStandard rate per…

Altanta Industries manufactures gadgets. In the month of March, the company incurred the following: Actual Gadgets produced 10,563 Direct Materials 20,000 purchased pounds 19,000 Direct Materials used pounds Cost of Direct $10.000

Altanta Industries manufactures gadgets. In the month of March, the company incurred the following: Actual Gadgets produced 10,563 Direct Materials 20,000 purchased pounds 19,000 Direct Materials used pounds Cost of Direct $10.000

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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