Taylor Enterprises purchased 56,000 pounds (cost = $420.000) of direct material to be used in the manufacture of the company's sole product According the production specifications, each completed unit requires five pounds of direct material at a standard cost of $7.80 per pound. Direct materials consumed by the end of the period totaled 53,500 pounds in the manufacture of 10,900 finished units. An examination of Taylor's payroll records revealed that the company worked 22,000 labor hours (cost $319,000) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $14.80 per hour. Assume that the company computes variances at the earliest point in time. Please FIND: 1) Direct-material Price Variance 2) Direct-material Quantity Variance 3) Direct-labor Rate Variance

Taylor Enterprises purchased 56,000 pounds (cost = $420.000) of direct material to be used in the manufacture of the company's sole product According the production specifications, each completed unit requires five pounds of direct material at a standard cost of $7.80 per pound. Direct materials consumed by the end of the period totaled 53,500 pounds in the manufacture of 10,900 finished units. An examination of Taylor's payroll records revealed that the company worked 22,000 labor hours (cost $319,000) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $14.80 per hour. Assume that the company computes variances at the earliest point in time. Please FIND: 1) Direct-material Price Variance 2) Direct-material Quantity Variance 3) Direct-labor Rate Variance

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Description: Taylor Enterprises purchased 56,000 pounds (cost = $420,000) of direct material to be used in themanufacture of the company's sole product. According the production specifications, each completed unitrequires five pounds of direct material at a stan

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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