Flint Bicycle Company manufacturers mass market bicycles that they sell to major chain retailers. ​​​​​Standard per bicycle Direct materials​:​2 tires/bicycle @ $1.25/tire Direct labor​​.5 hour of input at $30 per hour ​​​​​Actual performance for February 2020 Actual number of bicycles manufactured 800 Material purchased and used ​1,620 tires at $1.20 per tire.  Some were damaged during installation, and had to be thrown out. Direct labor​​58,000 hours @ 31.10 per hour   For each variance, be sure to indicate favorable (F), or unfavorable (U). The Material price variance is $____________________ The Material efficiency variance is $________________

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 Flint Bicycle Company manufacturers mass market bicycles that they sell to major chain retailers.

​​​​​Standard per bicycle

Direct materials​:​2 tires/bicycle @ $1.25/tire

Direct labor​​.5 hour of input at $30 per hour

​​​​​Actual performance for February 2020

Actual number of bicycles manufactured 800

Material purchased and used ​1,620 tires at $1.20 per tire.  Some were damaged during installation, and had to be thrown out.

Direct labor​​58,000 hours @ 31.10 per hour

 

For each variance, be sure to indicate favorable (F), or unfavorable (U).

The Material price variance is $____________________

The Material efficiency variance is $________________

 

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