Fitzhugh Company has the following information available for the current year: Standard: 3.5 feet per unit @ P2.60 per foot 5 direct labor hours @ P8.50 per unit Material Labor Actual: 95,625 feet used (100,000 feet purchased @ P2.50 per foot) 122,400 direct labor hours incurred per unit @ P8.35 per hour Material Labor 25,500 units were produced Require: Compute the following a. Material purchase price variance b. Material quantity variance c. Labor rate variance d. Labor efficiency variance
Fitzhugh Company has the following information available for the current year: Standard: 3.5 feet per unit @ P2.60 per foot 5 direct labor hours @ P8.50 per unit Material Labor Actual: 95,625 feet used (100,000 feet purchased @ P2.50 per foot) 122,400 direct labor hours incurred per unit @ P8.35 per hour Material Labor 25,500 units were produced Require: Compute the following a. Material purchase price variance b. Material quantity variance c. Labor rate variance d. Labor efficiency variance
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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
Transcribed Image Text:Activity 1
Fitzhugh Company has the following information available for the current year:
Standard:
Material
Labor
3.5 feet per unit @ P2.60 per foot
5 direct labor hours @ P8.50 per unit
Actual:
Material
Labor
95,625 feet used (100,000 feet purchased @ P2.50 per foot)
122,400 direct labor hours incurred per unit @ P8.35 per hour
25,500 units were produced
Require: Compute the following
a. Material purchase price variance
b. Material quantity variance
c. Labor rate variance
d. Labor efficiency variance
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