Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. $4 per lb.) $60 Direct labor (3 hrs. @ $15 per hr.) $45 During May the company incurred the following actual costs to produce 9,000 units. Direct materials (138,000 lbs. $3.75 per lb.) $517,500 Direct labor (31,000 hrs. $15.10 per hr.) $468,100 A. Compute the direct materials price and quantity variances. B. Compute the direct labor rate variance and the direct labor efficiency variance.

Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. $4 per lb.) $60 Direct labor (3 hrs. @ $15 per hr.) $45 During May the company incurred the following actual costs to produce 9,000 units. Direct materials (138,000 lbs. $3.75 per lb.) $517,500 Direct labor (31,000 hrs. $15.10 per hr.) $468,100 A. Compute the direct materials price and quantity variances. B. Compute the direct labor rate variance and the direct labor efficiency variance.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 28P: Haversham Corporation produces dress shirts. The company uses a standard costing system and has set...

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