Part of your company's accounting database was destroyed when a meteor hit the building. You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during the period was used in production. (Hint: It is helpful to solve for the unknowns in the order indicated by the letters in the following table.) Standard price or rate per unit of input. c Direct Material Direct Labor $16 per pound e Standard quantity per unit of output. C f Actual quantity used per unit of output a 3.5 hours Actual price or rate per unit of input $14 per pound $21 per hour Actual output Direct-material price variance. Direct-material quantity variance Total of direct-material variances b $40,000 F 20,000 units 20,000 units $120,000 F Direct-labor rate variance Direct-labor efficiency variance. Total of direct-labor variances d $200,000 F $130,000 F

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Part of your company's accounting database was destroyed when a meteor hit the building. You have been able to
gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw
material purchased during the period was used in production. (Hint: It is helpful to solve for the unknowns in the order
indicated by the letters in the following table.)
J
с
Direct
Material
Direct Labor
Standard price or rate per unit of input
$16 per pound
e
Standard quantity per unit of output
Actual quantity used per unit of output.
C
a
f
3.5 hours
Actual price or rate per unit of input.
$14 per pound
$21 per hour
20,000 units
20,000 units
Actual output
Direct-material price variance.
Direct-material quantity variance.
Total of direct-material variances
Direct-labor rate variance
Direct-labor efficiency variance
Total of direct-labor variances
$120,000 F
b
$40,000 F
-
d
$200,000 F
$130,000 F
Transcribed Image Text:Part of your company's accounting database was destroyed when a meteor hit the building. You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during the period was used in production. (Hint: It is helpful to solve for the unknowns in the order indicated by the letters in the following table.) J с Direct Material Direct Labor Standard price or rate per unit of input $16 per pound e Standard quantity per unit of output Actual quantity used per unit of output. C a f 3.5 hours Actual price or rate per unit of input. $14 per pound $21 per hour 20,000 units 20,000 units Actual output Direct-material price variance. Direct-material quantity variance. Total of direct-material variances Direct-labor rate variance Direct-labor efficiency variance Total of direct-labor variances $120,000 F b $40,000 F - d $200,000 F $130,000 F
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