Power Up produces protein bars. For direct materials, the standard price is $3.50 per pound. A case of the protein bars requires 8 pounds of the direct material. During June, Power Up purchased 22,600 pounds of the direct materials for a cost of $83, 620 and used 21, 330 pounds of direct materials to produce 2,700 cases of the protein bar. For direct labor, Power Up established a standard number of direct labor hours at 4 hours per case. The standard rate is $15 per hour. A total of 10,650 direct labor hours were worked during June at a cost of $ 161,880 to produce 2,700 cases of the protein bar.Required: Calculate the following variances and label each variance as favorable or unfavorable. Materials price variance Materials quantity variance Labor rate variance 4. Labor efficiency variance Extra Credit: What is the total materials variance?
Power Up produces protein bars. For direct materials, the standard price is $3.50 per pound. A case of the protein bars requires 8 pounds of the direct material. During June, Power Up purchased 22,600 pounds of the direct materials for a cost of $83, 620 and used 21, 330 pounds of direct materials to produce 2,700 cases of the protein bar. For direct labor, Power Up established a standard number of direct labor hours at 4 hours per case. The standard rate is $15 per hour. A total of 10,650 direct labor hours were worked during June at a cost of $ 161,880 to produce 2,700 cases of the protein bar.Required: Calculate the following variances and label each variance as favorable or unfavorable. Materials price variance Materials quantity variance Labor rate variance 4. Labor efficiency variance Extra Credit: What is the total materials variance?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Power Up produces protein bars. For direct materials, the standard price is $3.50 per pound. A
case of the protein bars requires 8 pounds of the direct material. During June, Power Up
purchased 22,600 pounds of the direct materials for a cost of $83, 620 and used 21, 330
pounds of direct materials to produce 2,700 cases of the protein bar. For direct labor, Power
Up established a standard number of direct labor hours at 4 hours per case. The standard rate
is $15 per hour. A total of 10,650 direct labor hours were worked during June at a cost of $
161,880 to produce 2,700 cases of the protein bar.Required: Calculate the following variances
and label each variance as favorable or unfavorable. Materials price variance Materials
quantity variance Labor rate variance 4. Labor efficiency variance Extra Credit: What is the
total materials variance?
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