Petoskey Manufacturing, which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $2 per pound) Direct labor (2 hours at $12 per hour) $24 During the month of April, the company manufactures 300 units and incurs the following actual costs. Direct materials purchased and used (1,850 pounds) Direct labor (620 hours) $7,130 $12 Instructions Compute the total, price, and quantity variances for materials and labor. $4,070

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Petoskey Manufacturing, which produces a single product, has prepared the following
standard cost sheet for one unit of the product.
Direct materials (6 pounds at $2 per pound)
Direct labor (2 hours at $12 per hour)
$24
During the month of April, the company manufactures 300 units and incurs the
following actual costs.
Direct materials purchased and used (1,850 pounds)
Direct labor (620 hours)
$7,130
$12
Instructions
Compute the total, price, and quantity variances for materials and labor.
$4,070
Transcribed Image Text:Petoskey Manufacturing, which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (6 pounds at $2 per pound) Direct labor (2 hours at $12 per hour) $24 During the month of April, the company manufactures 300 units and incurs the following actual costs. Direct materials purchased and used (1,850 pounds) Direct labor (620 hours) $7,130 $12 Instructions Compute the total, price, and quantity variances for materials and labor. $4,070
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