Racks Company has developed the following standards for one of its products: Direct materials 12 kilograms @ $14 per kg Direct labour 3 hours @ $18 per hour Variable overhead 3 hours @ $ 8 per hour The following activities occurred during the month of October: Materials purchased 10,000 kilograms at $13.60 per kg Materials used 9,000 kilograms Units produced 800 units Direct labour 2,500 hours at $19.00 per hour Actual variable overhead $22,000 The company records materials price variances at the time of purchase. Racks Company's materials price variance would be Racks Company's materials usage variance would be Racks Company's labour rate variance would be Racks Company's labour efficiency variance would be Who would NOT be responsible for an unfavourable material usage variance caused by poor quality material?
Racks Company has developed the following standards for one of its products: Direct materials 12 kilograms @ $14 per kg Direct labour 3 hours @ $18 per hour Variable overhead 3 hours @ $ 8 per hour The following activities occurred during the month of October: Materials purchased 10,000 kilograms at $13.60 per kg Materials used 9,000 kilograms Units produced 800 units Direct labour 2,500 hours at $19.00 per hour Actual variable overhead $22,000 The company records materials price variances at the time of purchase. Racks Company's materials price variance would be Racks Company's materials usage variance would be Racks Company's labour rate variance would be Racks Company's labour efficiency variance would be Who would NOT be responsible for an unfavourable material usage variance caused by poor quality material?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Racks Company has developed the following standards for one of its products:
Direct materials 12 kilograms @ $14 per kg
Direct labour 3 hours @ $18 per hour
Variable overhead 3 hours @ $ 8 per hour
The following activities occurred during the month of October:
Materials purchased 10,000 kilograms at $13.60 per kg
Materials used 9,000 kilograms
Units produced 800 units
Direct labour 2,500 hours at $19.00 per hour
Actual variable overhead $22,000
The company records materials price variances at the time of purchase.
- Racks Company's materials price variance would be
- Racks Company's materials usage variance would be
- Racks Company's labour rate variance would be
- Racks Company's labour efficiency variance would be
-
Who would NOT be responsible for an unfavourable material usage variance caused by poor quality material?
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