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Direct Labour: Direct Material: Quantity .25 hour Quantity, 4 kilograms Rate, $16 per hour Price, $0.80 per kilogram Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of 50,000 units were as follows: Direct Labour: $211,900 for 13,000 hours Direct Material: $170,100 for 210,000 kilograms (a) Use the variance formulas to compute the direct-material price and quantity variances and the direct-labour rate and efficiency variances. Indicate whether each varance favarable or unfavorable

Direct Labour: Direct Material: Quantity .25 hour Quantity, 4 kilograms Rate, $16 per hour Price, $0.80 per kilogram Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of 50,000 units were as follows: Direct Labour: $211,900 for 13,000 hours Direct Material: $170,100 for 210,000 kilograms (a) Use the variance formulas to compute the direct-material price and quantity variances and the direct-labour rate and efficiency variances. Indicate whether each varance favarable or unfavorable

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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Direct Labour: Direct Material:
Quantity .25 hour Quantity, 4 kilograms
Rate, $16 per hour Price, $0.80 per kilogram
Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram.
Actual costs incurred in the production of 50,000 units were as follows:
Direct Labour: $211,900 for 13,000 hours
Direct Material: $170,100 for 210,000 kilograms

(a) Use the variance formulas to compute the direct-material price and quantity
variances and the direct-labour rate and efficiency variances. Indicate whether
each varance favarable or unfavorable

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