The chief accountant reports the following information for LM Corp. Direct Materials Direct Labor Actual inputs * Standard prices $4,900 $8,000 Standard inputs allowed for actual output * Standard $4,700 $11,000 prices Actual costs $5,000 $10,000 1. For Direct Materials, compute the following variances: A. Flexible budget variance B. Price variance C. Quantity variance 2. For Direct Labor, compute the following variances: A. Flexible budget variance B. Rate variance C. Efficiency variance

The chief accountant reports the following information for LM Corp. Direct Materials Direct Labor Actual inputs * Standard prices $4,900 $8,000 Standard inputs allowed for actual output * Standard $4,700 $11,000 prices Actual costs $5,000 $10,000 1. For Direct Materials, compute the following variances: A. Flexible budget variance B. Price variance C. Quantity variance 2. For Direct Labor, compute the following variances: A. Flexible budget variance B. Rate variance C. Efficiency variance

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 27BEA: Rath Company showed the following information for the year: Required: 1. Calculate the standard...

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