The following data for Keefe Company pertain to the production of 500 units of Product X during December. Selected data items are omitted. Standard cost per unit ⚫ Direct Materials - 4 units of material A x $3.00 per unit 1 unit of material B x $4.00 per unit Direct Labor - 3 hours x $9.00 per hour Activity for September • Materials purchased Material A - 4,500 units x $3.10 per unit Material B - 1,100 units x $4.15 per unit Materials used 。 Material A - 4,150 units 。 Material B - 1,005 units Direct labor used - 2,950 hours x $9.40 per hour Production output - 1,000 units There were no beginning direct materials inventories. a. Determine the materials price and quantity variances. b. Determine the labor rate and efficiency variances.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data for Keefe Company pertain to the production of 500 units
of Product X during December. Selected data items are omitted.
Standard cost per unit
⚫ Direct Materials - 4 units of material A x $3.00 per unit
1 unit of material B x $4.00 per unit
Direct Labor - 3 hours x $9.00 per hour
Activity for September
•
Materials purchased
Material A - 4,500 units x $3.10 per unit
Material B - 1,100 units x $4.15 per unit
Materials used
。 Material A - 4,150 units
。 Material B - 1,005 units
Direct labor used - 2,950 hours x $9.40 per hour
Production output - 1,000 units
There were no beginning direct materials inventories.
a. Determine the materials price and quantity variances.
b. Determine the labor rate and efficiency variances.
Transcribed Image Text:The following data for Keefe Company pertain to the production of 500 units of Product X during December. Selected data items are omitted. Standard cost per unit ⚫ Direct Materials - 4 units of material A x $3.00 per unit 1 unit of material B x $4.00 per unit Direct Labor - 3 hours x $9.00 per hour Activity for September • Materials purchased Material A - 4,500 units x $3.10 per unit Material B - 1,100 units x $4.15 per unit Materials used 。 Material A - 4,150 units 。 Material B - 1,005 units Direct labor used - 2,950 hours x $9.40 per hour Production output - 1,000 units There were no beginning direct materials inventories. a. Determine the materials price and quantity variances. b. Determine the labor rate and efficiency variances.
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