At the beginning of the year, Macquarie, Inc. set the following standards: Direct materials: 2.5 lbs./unit at a cost of $3/1b. Direct labor: 3 hrs./unit at a cost of $15/hr. At the end of the year, the following information is available: Direct materials purchased: Direct materials used: 50,000 lbs. at a cost of $175,000 48,000 1bs. $360,000 Direct labor cost: Production: 25,000 units 1) Compute the materials price variance: $ 2) Compute the materials usage variance: $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%
At the beginning of the year, Macquarie, Inc. set the following standards:
Direct materials:
2.5 lbs./unit at a cost of $3/1b.
Direct labor:
3 hrs./unit at a cost of $15/hr.
At the end of the year, the following information is available:
Direct materials purchased:
Direct materials used:
50,000 lbs. at a cost of $175,000
48,000 Ibs.
$360,000
25,000 units
Direct labor cost:
Production:
1) Compute the materials price variance: S.
2) Compute the materials usage variance: $
3) If the labor rate variance is $40,000 favorable, compute the actual number of direct labor hours
worked:
Transcribed Image Text:At the beginning of the year, Macquarie, Inc. set the following standards: Direct materials: 2.5 lbs./unit at a cost of $3/1b. Direct labor: 3 hrs./unit at a cost of $15/hr. At the end of the year, the following information is available: Direct materials purchased: Direct materials used: 50,000 lbs. at a cost of $175,000 48,000 Ibs. $360,000 25,000 units Direct labor cost: Production: 1) Compute the materials price variance: S. 2) Compute the materials usage variance: $ 3) If the labor rate variance is $40,000 favorable, compute the actual number of direct labor hours worked:
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education