Material and Labor VariancesThe following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:   Actual Costs   Standard Costs Direct material   19,500 lbs. @ $5.30   20,000 lbs. @ $5.10 Direct labor   31,000 hrs. @ $8.40   30,000 hrs. @ $8.70   Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Answer   Split cost: Answer   Standard cost: Answer   a. Materials price Answer Answer b. Materials efficiency Answer Answer     Labor Variances Actual cost: Answer   Split cost: Answer   Standard cost: Answer   c. Labor rate Answer Answer d. Labor efficieny Answer Answer

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2CMA: Marten Company has a cost-benefit policy to investigate any variance that is greater than 1,000 or...
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Material and Labor Variances
The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product:

  Actual Costs   Standard Costs
Direct material   19,500 lbs. @ $5.30   20,000 lbs. @ $5.10
Direct labor   31,000 hrs. @ $8.40   30,000 hrs. @ $8.70

 

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Materials Variances
Actual cost: Answer  
Split cost: Answer  
Standard cost: Answer  
a. Materials price Answer Answer
b. Materials efficiency Answer Answer

 

 
Labor Variances
Actual cost: Answer  
Split cost: Answer  
Standard cost: Answer  
c. Labor rate Answer Answer
d. Labor efficieny Answer Answer
 
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