Calculate the material variances.Calculate the labor variances.Complete your calculations by filling the in highlighted cells. Discuss your observations about the variances and ways to plan to improve any of the variances.Cookie Business Actual Total Cost of Direct Materials $ 225,000 Standard Total Cost of Direct Materials $ 224,800 Actual Materials Used 30 Standard Materials Used 31 Actual Direct Labor Rate $ 15.50 Standard Labor Rate $ 15.00 Actual Hours Worked 45 Standard Hours Worked 40 AmountFavorable/ Unfavorable Calculate Materials Variances: Materials Price Variance Materials Quantity Variance Calculate Labor Variances: Labor Rate Variance Labor Efficiency Variance

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Description: Calculate the material variances.Calculate the labor variances.Complete your calculations by filling the in highlighted cells. Discuss your observations about the variances and ways to plan to improve any of the variances.Cookie Business Actua

A variance is a difference between actual measured output and a basis, such as a budgeted amount.…

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Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 8P: Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were...

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Calculate the material variances.
Calculate the labor variances.
Complete your calculations by filling the in highlighted cells. Discuss your observations about the variances and ways to plan to improve any of the variances.

Cookie Business


Actual Total Cost of Direct Materials	$ 225,000
Standard Total Cost of Direct Materials	$ 224,800
Actual Materials Used	30
Standard Materials Used	31

Actual Direct Labor Rate	$ 15.50
Standard Labor Rate	$ 15.00
Actual Hours Worked	45
Standard Hours Worked	40

	Amount	Favorable/ Unfavorable
Calculate Materials Variances:
Materials Price Variance
Materials Quantity Variance

Calculate Labor Variances:
Labor Rate Variance
Labor Efficiency Variance

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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