Manlow Company makes a cologne called Allure. The standard cost for one bottle of Allure is as follows: 6ozs. At $0.90 per oz. 0.5 hours at $12.00 per hour Direct materials Direct labour During the month, the following transactions occurred in manufacturing 10,000 bottles of Allure: 1. 2. 3. 58,000 oz. of materials were purchased at $1.00 per oz All materials purchased were used to produce the 10,000 bottles of Allure 4,900 direct labour hours were worked at a total labour cost of $56,350.

Manlow Company makes a cologne called Allure. The standard cost for one bottle of Allure is as follows: 6ozs. At $0.90 per oz. 0.5 hours at $12.00 per hour Direct materials Direct labour During the month, the following transactions occurred in manufacturing 10,000 bottles of Allure: 1. 2. 3. 58,000 oz. of materials were purchased at $1.00 per oz All materials purchased were used to produce the 10,000 bottles of Allure 4,900 direct labour hours were worked at a total labour cost of $56,350.

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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Question

PLEASE USE THE ATTACHED PHOTO TO ANSWER THE FOLLOWING QUESTIONS

Compute the following variances:

Total material variance
Material price variance
Material usage variance
Total labour variance
Labour rate variance
Labour efficiency variance

Manlow Company makes a cologne called Allure. The standard cost for one bottle of Allure is
as follows:
6ozs. At $0.90 per oz.
0.5 hours at $12.00 per hour
Direct materials
Direct labour
During the month, the following transactions occurred in manufacturing 10,000 bottles of Allure:
1.
2.
3.
58,000 oz. of materials were purchased at $1.00 per oz
All materials purchased were used to produce the 10,000 bottles of Allure
4,900 direct labour hours were worked at a total labour cost of $56,350.

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Subject: acounting