Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: $ 3.00 Materials -1 Ib plastic e $3.00 Direct labor-1.6 hre $10.00. Factory overhead... 16.00 4.45 Total.... $23.45 The charges to the manufacturing department for November, when 5,000 units were produced, follow: Materials-5,300 b e $3.00. $ 15.900 Direct labor-8,200 hre s9.80. 80,360 Factory overhead ... 23,815 Total. $120,075 The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 lb were purchased at a price of $2.90 per pound. Critical Thinking Problem REQUIRED: Calculate the following from standard costs for the data given, using the formulas in Determination of Variances on pages 421-422 and 424: 1. Materials quantity variance. 2. Materials purchase price variance (at time of purchase). 3. Labor efficiency variance. 4. Labor rate variance.

Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: $ 3.00 Materials -1 Ib plastic e $3.00 Direct labor-1.6 hre $10.00. Factory overhead... 16.00 4.45 Total.... $23.45 The charges to the manufacturing department for November, when 5,000 units were produced, follow: Materials-5,300 b e $3.00. $ 15.900 Direct labor-8,200 hre s9.80. 80,360 Factory overhead ... 23,815 Total. $120,075 The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 lb were purchased at a price of $2.90 per pound. Critical Thinking Problem REQUIRED: Calculate the following from standard costs for the data given, using the formulas in Determination of Variances on pages 421-422 and 424: 1. Materials quantity variance. 2. Materials purchase price variance (at time of purchase). 3. Labor efficiency variance. 4. Labor rate variance.

Name: Fritz Corp. manufactures and sells a single product. The company uses
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Description: Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows:Materials-1 Ib plastic @ $3.00$ 3.00Direct labor-1.6 hr @ $10.00.16.00Factory overhead.4,45Total. .$23.45The

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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